The Union Democrat: Lehman bond losses on supervisors’ agenda
Supervisors met last month in a closed session to discuss whether the county should be represented in Lehman’s ongoing bankruptcy proceedings, as well as join San Mateo County in a lawsuit the Bay Area county recently filed against executives at Lehman, accusing them of ignoring signs that led to the company’s downfall.
Chaos on Wall Street proceeded Lehman’s collapse, with the Dow Jones Industrial Average losing over a third of its value by early October.
A Tuolumne County-run investment pool could be out its $2 million investment as the result of Lehman’s failure. A similar San Mateo County pool, meanwhile, could lose up to $150 million.
Some economic experts estimate that following Lehman’s bankruptcy proceedings, bond investors in the company, like Tuolumne and San Mateo counties, may qualify for 17-to-25 cents on the dollar.
Under the proposed agreement between the county and the two firms — Pearson, Simon, Soter, Warshaw & Penny; and Meyers, Nave, Riback, Silver & Wilson — the county would pay only if successful in the litigation. The firms’ share would come to 25 percent of the award given in the respective litigation, leaving the county with 75 percent in both instances.
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|Autor (Datum des Eintrages):||manyfulddick (09.12.08 15:01:08)|
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