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— Bankruptcy —
Not long after the fall of Bear Stearns Cos. in March of 2008 (and before it, too), talk abounded as to Lehman Brothers' future. Sept. 29: As firms continue to pick over the choice parts of bankrupt Lehman Brothers, Bain Capital LLC and Hellman & Friedman LLC have struck a $2.15 billion deal for its asset management division, which includes fund manager Neuberger Berman, as well as fixed-income, private equity and other alternative-asset operations. Sept. 23: A day after selling its Asian operations to Japan's Nomura Holdings Inc. for $225 million, Lehman also unloaded its European and Middle East operations to the eager bidder. Days later, Nomura pulled out of talks to acquire its bond business. Sept. 22: Barclays plc, bought the fallen bank's North American investment banking unit in a deal approved Sept. 20, and The Deal took a look at the dramatic and swift reshaping of the Street and asked: "Is it dead?" Sept. 17: Though they couldn't agree to a transaction over the weekend, Lehman
now has a $1.75 billion deal in place to sell its North American
investment banking unit to Barclays. The deal saves up to 10,000 jobs and securing itself a prominent role in
the annals of the U.S.' largest bankruptcy.
The Barclays agreement covers Lehman's North American fixed income and
equities sales, trading and research, and investment banking
operations, and would put Barclays' in the top three in U.S. capital
markets, realizing president Bob Diamond long-held ambition to build a
serious player on Wall Street.
The Barclays deal does not include Lehman's investment management division, which includes fund manager Neuberger Berman and Lehman Brothers Asset Management. As of Tuesday, Lehman was in advanced discussions with at least five private equity firms, including Clayton, Dubilier & Rice Inc., Bain Capital LLC and Hellman & Friedman LLC and reports have suggested a deal could be announced within a few days. -- Laura Board and Renee Cordes Sept. 16: As reports abounded a Barclays deal was in place, it was not the first time Barclays' Bob Diamond was on the brink. Meanwhile, Lehman staff are said to have preferred unemployment to a Barclays buyout, and in happier news, a Lehman employee's wedding went on. Sept. 15: Lehman Brothers files for bankruptcy, ending the search for this era's signature bankruptcy. Lehman Brothers Holdings Inc., the fourth-largest U.S. investment bank, filed for bankruptcy protection Monday, Sept. 15, in the biggest-ever Chapter 11 filing. The 158-year-old New York institution's move comes after the collapse of a U.S. government-led effort to save the bank. Bank of America Corp. and Barclays pulled their respective bid proposals after failing to secure guarantees against Lehman's future losses. Bank of America went on to agree to buy Merrill Lynch & Co. for $50 billion, a deal apparently seen by Fed officials as softening the blow for investors absorbing Lehman's implosion. Various media outlets reported that Lehman Brothers listed more than $613 billion of debt, which means it is a larger bankruptcy than the failure of WorldCom Inc. in 2002 and Drexel Burnham Lambert's in 1990. Lehman's statement said none of its subsidiaries, including its broker-dealers, would participate in the filing, and that its broker-dealers would be open for business Monday as usual. One source had said Sunday that federal officials felt they were "running out of bullets" and might have decided to allow at least one firm to fail after a spate of interventionist moves. The Fed crafted a $29 billion backstop for J.P. Morgan Chase & Co.'s acquisition of Bear Stearns Cos. earlier this year, and the Department of the Treasury just last week seized leading mortgage securitizers the Federal National Mortgage Association and the Federal Home Loan Mortgage Corp., better known as Fannie Mae and Freddie Mac. Lehman's stock had fallen 94% in the past year, and its market capitalization dropped to $2.5 billion as investors questioned the bank's ability to survive as an independent firm. - Vipal Monga and Laura Board See also: Lehman collectibles for sale on eBay, Lehman employees begin job search, Is this the end, or the beginning, of an 'independent' Wal Street? THE FILING EXPOSED Sept. 15: The nitty-gritty of the Lehman Chapter 11 By the time Lehman Brothers Holdings Inc.'s lawyers made a quick dash to U.S. Bankruptcy Court Monday morning, the resulting Chapter 11 was no surprise. The bankruptcy filing represents the best option available for an orderly liquidation of assets. It puts a stay on a flurry of lawsuits that creditors would almost certainly have filed against America's fourth largest investment bank today and in days to come. It prevents creditors from forcing a liquidation and from its holdings overseas from being seized.
Citi, BoNY, Aozora are among largest Lehman creditors, Sept. 14: Barclays walks from Lehman talks Urgent efforts to forge a takeover of Lehman Brothers Inc. hit a major stumbling block Sunday afternoon as Barclays plc, which emerged as the leading suitor for Lehman over the weekend, decided to walk away from the deal, according to a bank spokesman. "We have pulled out," the representative said, noting that, under the deal structure currently being contemplated in emergency meetings at the Federal Reserve Bank of New York headquarters in downtown Manhattan, Barclays would have had to take on billions of dollars worth of toxic mortgage-backed securities, potentially exposing the London-based bank to major losses. "We cannot do that without a shareholder vote," the representative added. Logisitically, he said, that would take too long. - V.M. WATCH IS ON Sept. 12: Hope grows for Lehman Hopes of a lifesaving deal for Lehman Brothers Inc. mounted Friday morning amid reports that several banks are examining the books of the fourth-largest U.S. investment bank. On Thursday, the plunge in the bank's shares continued after a ratings agency report questioned the firm's ability to retain its A debt rating and maintain its independence. But then overnight, reports surfaced of talks taking place with the cooperation -- though not the financial backing -- of the Treasury and the Federal Reserve. See also: No Lehman deal without Fed guarantees Sept. 11: Who would buy Lehman? Lehman Brothers Inc. continues to crater as its shares lost another $3.03 or 42%, closing at $4.22 for a bite-sized market cap of under $3 billion. At that price, if it weren't for the unfortunate business of bad mortgage debt, Lehman looks like a tasty treat for a number of healthier banks and firms. The day started with talk of Goldman Sachs Group Inc. as the likeliest bidder. However, the Street, which having heard this rumor before, responded unfavorably. Goldman's stock has been punished since the beginning of the week in part because of this rumor. (Goldman earnings look a little shaky this quarter as well.) Additionally, unnamed sources at Goldman told Reuters Thursday afternoon that the firm was not interested in Lehman. "Integrating two large investment banks would be too disruptive," a source told Reuters. - Matthew Wurtzel Sept. 11: Lehman, WaMu: Why the differences are important Both Lehman Brothers Inc. and Washington Mutual Inc. are testing record lows as the market reflects concern that the two may fail. But while they're viewed by many in the same light -- after all they're "banks" -- it's worthwhile to step back and think this through. In fact, they are quite different, with different economics and different regulators. A "collapse," if that's what we're talking about, would unfold differently as well. For federal regulators the best solution to both problems would be a buyer or, even better, survival. Both those options may prove easier for WaMu than Lehman. - M.W. See also: Coffee guy refuses to serve Lehman reporters , Lehman's neighboring businesses take a hit, Lehman for sale: Is Golman buying? Meanwhile, we examined Lehman CEO Richard Fuld's plight and found it's not easy running Lehman. STRATEGIC PLANS: TOO LITTLE TOO LATE? AND IS FULD READY TO DECAMP? Sept. 10: Lehman rushes out earnings; posts $3.9B loss After watching its stock drop 45% Tuesday, Lehman Brothers Inc. rushed out its third-quarter earning report Wednesday in hopes of stopping the bleeding. The beleaguered investment banks posted an estimate net loss of $3.9 billion, or $5.92 per share. The bank took write-downs of $7.8 billion, including $5.3 billion on residential mortgage-related positions and $1.7 billion on commercial real estate. Among the "key strategic initiatives" that the investment bank announced were plans to sell its asset management unit -- including crown jewel Neuberger Berman LLC -- to a private equity firm and the spinoff of mortgage-related assets into a separate company. - George White Sept. 10: Lehman's Fuld may be ready to deploy his parachute After Wednesday's emergency third-quarter earnings report, Lehman Brothers Inc.'s CEO Richard Fuld is certainly standing on the edge of a precipice. Could he be dreaming of jumping off with his golden parachute at the ready? With his reputation at stake, Fuld's restructuring plans could either soar or sink Lehman. The plan raises many questions including how Lehman would reposition itself and Fuld's strategy for the company's future growth. - Maria Woehr Sept. 10: Pershing's Ackman won't pick on Lehman It is a rare moment when Pershing Square Capital Management LP's vocal activist William Ackman lays off of his battered financial sector short targets, but it appears he has a soft spot in his heart for the ailing Lehman Brothers Inc. When asked about his thoughts on Lehman, Ackman said the bank is in a "tough spot," adding that he'd rather not talk about Lehman because "I think they have been picked on enough." He further explained that Pershing bought put options on Lehman as a market hedge rather than a bet against the company. - Michael Rudnick Meanwhile, George Soros, the man who broke the Bank of England, bet on Lehman. See also: The regulatory strategy behind Lehman's shrinking act, Report: Lehman received takeover approach from PE firm, Analysts offer thoughts on Lehman's troubles, HOLDING OUT HOPE Sept. 9: Report: Lehman-KDB talks have ended: It appears that Lehman Brothers Inc. will have to look elsewhere for a white knight as talks with Korea Development Bank have reportedly broken down. This, days after KDB confirmed talks to buy a Lehman stake. - G.W. Sept. 8: RBC is latest rumored Lehman suitor While most eyes are on Asian banks as potential bidders for troubled Lehman Brothers Inc., apparently a bank to the north, Royal Bank of Canada, had considered a bid back in July, according to a Financial Times story. - M.W. Sept. 4: Could HSBC bid for Lehman? Several possible white knights and options have been presented in reports over the past few weeks. Some of the most recent rumors targeting the bank include the possibility that HSBC Holdings plc could be interested in bidding for the bank. - M.W. See also: PE firms close in on Lehman's asset management unit, Lehman may create buyer for mortgage assets, Lehman will either be wanted or shunned, More selling rumors swirl around Lehman, Lehman's management considers a take-private , Lehman to consider partnering or asset sale Sept. 8: Is Lehman experiencing brain drain? Lost amid all the rumor and speculation surrounding Lehman Brothers Inc.'s future is news of management changes -- or should we say "brain drain"? The Wall Street Journal highlighted the recent management changes at Lehman. Effective immediately Eric Felder and Hyung Soon Lee will become global co-heads of fixed income and that Riccardo Banchetti and Christian Meissner have been appointed co-chief executive officers of Europe and the Middle East. Meanwhile, Andrew Morton, who was just tapped to run the firm's global fixed-income operations in February 2008, is leaving the firm, and Jeremy Isaacs, who since 2000 has been the firm's chief executive officer for Europe, the Middle East and Asia-Pacific, has decided to retire from the firm effective Dec. 31. These management changes come after Herbert McDade III replaced Lehman president Joe Gregory. This comes on top of rumors that Lehman Brothers could dole out pink slips to another 1,000 to 1,500 employees as early as Tuesday, according to The Wall Street Journal. The cuts are expected ahead of the bank's third-quarter earnings announcement Sept. 15 and follow 6,000 layoffs since last June, The New York Times reported on Aug. 28. - M.W. June 16: Lehman's second-quarterly earnings call in which, as had been expected, it reported a $2.8 billion loss. (Alongside the write-down, Lehman also said June 9 it would raise $6 billion in a public offering to help shore up cash.) The Wall Street Journal's MarketBeat live-blogged the call.
June 13: The Lehman crisis: Fuld makes it to Friday At Lehman Brothers, they must be counting the hours to market close. For CEO Dick Fuld, the circle tightens. Can he survive? Can the firm survive? At what point do those two questions, long essentially indivisible, diverge? The drumbeat against Fuld has sounded since the big loss was announced. The Joseph Gregory and Erin Callan sacrifices toss more gasoline on that fire. Now the Wall Street Journal's Heard on the Street is muttering about a board that -- an odd logic, really -- whose outside directors have served for an average of a decade and is thus, ipso facto, out of touch with changes on Wall Street. - R.T. See also: Lehman shakes up management, Lehman sets out to raise $6 billion, loses street cred with Fitch, June 9: Things are worse at Lehman than originally thought Last week, Lehman was rumored to be have second-quarter losses of about $300 million to $400 million, but with the results far worse, the bank decided to warn Wall Street of the staggering $5.14 a share loss in hopes of heading off a panicked run on the bank like that which did in Bear Stearns Cos. With the steep losses sure to further shake up already jittery investors, Lehman announced plans to raise another $6 billion in new capital through a stock offering, adding to the $6 billion it's secured already this year to shore up its balance sheet. - G.W. June 6: Media Maneuvers: Curses! In a page A1 scoop on June 3, the WSJ broke the news that the investment bank, which has been battling persistent rumors of its pending demise, is considering raising $3 billion to $4 billion in new capital to shore up its balance sheet. ... The WSJ itself further advanced the ball the next day with two more pieces, reporting that Lehman might look overseas for fresh capital and speculating on possible buyers. - Yvette Kantrow LEHMAN IS NOT BEAR, POISED TO FALL ALL THE SAME? Not long after the fall of Bear Stearns, talk abounded as to "independent" Lehman Brothers Inc.'s future. Lehman was not Bear, but done in all the same. Comments |
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im 65 years old five years ago i invested my lifes saving of 50.000 dollars in lehman brothers will i get something back very very upset