Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Display:
$300 million loan, not billion. Jeez.
by Upstate NY on Sun Mar 7th, 2010 at 08:57:12 PM EST
[ Parent ]
but IIRC they made a payment under a swap agreement - which they were supposed to - but might have decided not to do and wait for the bankruptcy estate to sort out later...

In the long run, we're all dead. John Maynard Keynes
by Jerome a Paris (etg@eurotrib.com) on Mon Mar 8th, 2010 at 05:24:32 AM EST
[ Parent ]
Isn't that the excuse Greece and Goldman Sachs used to cook Greece's books?

En un viejo país ineficiente, algo así como España entre dos guerras civiles, poseer una casa y poca hacienda y memoria ninguna. -- Gil de Biedma
by Migeru (migeru at eurotrib dot com) on Mon Mar 8th, 2010 at 05:30:20 AM EST
[ Parent ]
in this case, the underlying transaction was, as far as I can remember, completely benign - the problem was the person who decided to send 300M into what was obviously-by-then a black hole. What I can't remember is whether that payment was an amount owed to Lehman (in which case the bankruptcy trustee would have claimed it anyway, just a bit later) or if it was some kind of drawdown (in which case the German bank would have had a legitimate reason not to let it happen once Lehman was bankrupt, and it traded good money for a one claim among a very large number of similar claim for Lehman's shrinking assets).

In the long run, we're all dead. John Maynard Keynes
by Jerome a Paris (etg@eurotrib.com) on Mon Mar 8th, 2010 at 11:08:27 AM EST
[ Parent ]
Can't we assume, however, that it was the latter since the US taxpayer had to make do on a claim that was never recovered through bankruptcy proceedings?
by Upstate NY on Mon Mar 8th, 2010 at 01:02:51 PM EST
[ Parent ]

Display:

Occasional Series