Replies to post #91 on The Zombie Dancers

[stripus]

Lehman Urges Court To Unseal Details Of Barclays Sale Probe
David McLaughlin
https://www.fis.dowjones.com/Login.aspx


September 28, 2009
Daily Bankruptcy Review

Lehman Brothers Holdings Inc. and its creditors are ratcheting up their fight with Barclays PLC over Lehman's sale to the British bank, pushing to make public new details that Barclays wants to keep secret.


Lehman and its creditors, who claim Barclays pocketed a massive windfall from the sale, say Barclays is going too far in demanding that documents and depositions about the deal be kept from public view.

"Barclays has misused the provisions of the confidentiality order to seal virtually the entire record," Lehman's lawyers said in court papers.

The accusations come after Lehman and creditors unveiled earlier this month the results of their investigation into the sale of Lehman's broker-dealer business to Barclays days after Lehman filed for bankruptcy.

They are asking a New York bankruptcy judge to revisit the deal and order Barclays to return what they say are billions of dollars in excess assets that the British bank received.

The lengthy court documents backing up their findings were heavily redacted because much of the information stemmed from documents and testimony by ex-Lehman employees that Barclays deemed confidential.

Lehman and the committee representing unsecured creditors are now asking a judge for permission to make public the redacted sections of their court filings describing their findings. They say Barclays has no right to keep the information secret.

"Keeping the motions sealed will harm both the creditors in these cases and the public at large," lawyers for the creditors committee said.

A spokesman for Barclays couldn't be reached for comment.

Lehman says Barclays received at least $8.2 billion in excess assets, including an undisclosed $5 billion discount off the book value of securities transferred to Barclays and $2.7 billion in additional assets that also weren't disclosed to the judge who approved the sale.


Document DJFDBR0020090928e59s000dx
(c) 2009 Dow Jones & Company, Inc.

[stripus]

A very short list of suitors for a potential LEH buyout.
This really makes sense to me, taken from the J board:
Posted by: coach tequila Date: Saturday, October 10, 2009 11:22:53 AM
In reply to: brikk who wrote msg# 3159 Post # of 3171

It is hard to say...not a whole lot of information is available.

If I remember correctly, JPM had quite a bit of counterparty exposure along with Citi.

Barclay's tends to make the most sense to me. I believe when it all washes out that Barclay's can benefit the most. Both the US and UK wanted that marriage. No one knew what the potential derivative, CDO, Swap, etc. exposure was. At the time, no one trusted anyone. So no one stepped up.

IMO Barclay's has civil and criminal exposure to the way they were trying to get assets thru "under the tag" and behind Judge Peck's back. Including the top brass at Barclay's. There was an interview done with Bob Diamond of Barclay's last month and he was almost bragging about getting as many LEH assets as he could!

Judge Peck during the late night approval of the "Sale" left the door open that alot of work went into a short period of time to put the "Sale" of Lehman together and that the possibility existed that mistakes were made and might need to be revisited.

For $2B Barclay's could buy the LEH Common Stock, assume the $325B liabilities, including the $100B Bonds, plus the $11B Preferreds and Trusts, and have an $300B asset base that might be worth $400B in the coming months years.

That is not counting all of the relationships it would gain OVERNIGHT thru the existing thousands of counterparties holding derivatives, etc.

In effect, freeing up the notional $39 TRILLION of counterparty assets that are currently frozen worldwide. From a government standpoint...I don't think it is that far fetched for the US and UK to lend a hand for 30B that releases that type of money flow and investor confidence back into the global economy.

Not to mention the public relations bonanza that Barclay's would get by "saving the day" in front of the world!

Just my opinion...

Coach T