In its bankruptcy petition, Lehman listed Citigroup among its biggest unsecured creditors, with about $138 billion in bonds as of July 2. The Bank of New York Mellon Corp. was listed as holding about $17 billion in debt. Citi and Bank of New York both said Monday they serve as trustees for Lehman debt, not that they are creditors themselves. Citi issued a statement to say that its role is "administrative in nature and does not represent exposure for Citi to Lehman." Bank of New York said, "In this situation, our role has been to serve as a trustee for certain Lehman Brothers bond offerings. We have no outstanding loans to Lehman." Lehman said that as of May 31, it had assets of $639 billion and debt of $613 billion.
Citi and Bank of New York both said Monday they serve as trustees for Lehman debt, not that they are creditors themselves. Citi issued a statement to say that its role is "administrative in nature and does not represent exposure for Citi to Lehman." Bank of New York said, "In this situation, our role has been to serve as a trustee for certain Lehman Brothers bond offerings. We have no outstanding loans to Lehman."
Lehman said that as of May 31, it had assets of $639 billion and debt of $613 billion.
AFAIK, IANAL, a trustee can be held responsible for loses upon failing the Due Diligence, Misfeasance, and/or Malfeasance Tests.
Reckon it depends on how the Trust or Trustee Contract was written?
