Treasury Secretary Timothy Geithner says J.P. Morgan's collateral requests from a stricken Lehman Brothers was "immaterial" to the bank's collapse and the filing of the largest bankruptcy in U.S. history.
NEW YORK (Reuters) - The former JPMorgan Chase & Cotrader known as the "London Whale" was not responsible for Lehman Brothers Holdings Inc's bankruptcy and should not be dragged into an $8.6 billion lawsuit accusing the largest U.S. bank of causing it, JPMorgan said.
NEW DELHI: The Lehman Brothers collapse of 2008, the gravest since the Great Depression of 1930s, still haunts investors. The precipitous fall of equities in China, the protracted negotiations for a bailout for a bankrupt Greece, not to mention the spectre of Fed rate hike maybe giving the traders that sinking feeling, again.
Treasury Secretary Timothy Geithner will respond to questions from Lehman Brothers' creditors over allegations that J.P. Morgan illegally siphoned billions of dollars from the collapsing investment bank in the days before it filed for the largest bankruptcy in U.S.
NEW DELHI: Ever since Raghuram Rajan took charge the 23rd governor of the Reserve Bank of India in August 2013, the central bank, in tandem with the government, has introduced a series of reforms and measures in the banking system to support growth and bring down non-performing asset. But has RBI really done enough to pre-empt a possible collapse of the Indian banking system, far less to avoid a Lehman-like crisis in India? The collapse of the global investment bank, Lehman Brothers, in September 2008 had brought the financial sector the world over to its knees.
NEW YORK: Six years, seven months and 13 days after Lehman Brothers Holdings Inc filed for bankruptcy, its former chief executive, Richard Fuld Jr., is still insisting it did not go broke. "Lehman Brothers in 2008 was not a bankrupt company," Fuld said at a conference in Manhattan on Thursday, his first such public appearance since the financial crisis for which Lehman's massive Chapter 11 filing marked a tipping point.
Yesterday we described in extensive detail just how on September 10, 2008, by way of a glaringly erroneous margin call, either purposefully or by accident JP Morgan managed to extract over $250 million in variation margin cash from Lehman, which may well have been the catalyst for the end of Dick Fuld's megabank as it precipitated several other multi-billion margin calls from both JPM and other banks, ultimate;y leading to Lehman's liquidation filing fi
Eight years ago the world, and the western financial system changed forever, when the impossible became all too real when Wall Street woke up to news that what until a few days ago was one of the world's largest investment banks had filed for bankruptcy, which would proceed to unleash the most unprecedented period of central bank micromanagement, and market manipulation in history.
Courtesy of Reuters Vikram Subhedar, this is what the front page of Reuters looked like on that day.