Major Banks, Govts, Funds File Lehman Brothers Claims
24 September 2009 - 10:50PM
Dow Jones News
Major financial institutions including Barclays Bank PLC (BCS)
and Morgan Stanley (MS), Abu Dhabi's sovereign wealth fund and
hedge fund GLG Partners (GLG) have submitted claims against
collapsed investment bank Lehman Brothers, according to the claims
administrator's Web site.
In one of its claims, Barclays is demanding as much as $1.34
billion in respect of guarantees given under derivatives contracts;
Morgan Stanley's largest claim for $1 billion is also connected to
Lehman's role as counterparty on trades with the investment bank;
other banks making claims on derivative contracts include Lloyds
Banking Group's (LYG) unit Bank of Scotland, and Swiss bank UBS AG
(UBS).
Pension funds including the New York State Teachers' Retirement
plan also submitted hefty claims, while New York City's Department
of Finance submitted a $627 million tax bill for unpaid commercial
rent tax and general corporation tax going as far back as 1996.
The carnage caused by the collapse of Lehman Brothers just one
year ago goes far beyond companies in the financial sector and
ranges from debts as high as $48 billion claimed by the U.S.'
Wilmington Trust Co. to just a fistful of dollars in the case of
private investors and borrowers.
A hospitality event is behind the $126,000 being claimed by the
Mandarin Oriental Hotel in Washington, D.C., where 30 people were
scheduled to be entertained at Lehman's expense. London's Canary
Wharf, where Lehman had its U.K. headquarters, is after more than
$4 billion, including $2.6 billion in lost rent under Lehman's
30-year lease.
Lehman Brothers filed for bankruptcy protection overnight
Sunday, Sept. 14, 2008, in the U.S. with its European operations
being put into administration the following day. The collapse of
one of the world's largest banks paralysed financial markets and
heralded the disappearance of Bear Stearns while Bank of America
(BAC) subsequently took over Merrill Lynch.
-By Marietta Cauchi and Margot Patrick, Dow Jones Newswires; +44
207 842 9241; marietta.cauchi@dowjones.com