Lehman Brothers sues Intel over a billion dollar deal

Bankrupt investment firm Lehman Brothers is suing Intel over accusations that it had seized $1bn in collateral in breach of a swap agreement. The bank synonymous with the global financial meltdown told New York's bankruptcy court in a filing that Intel had taken more than its fair share out of its subsidiary Lehman Brothers …

[JDX]

How does Lehman even still exist?

[Velv]

If you're not part of the solution, there's money to be made prolonging the problem.

Winding up a bankrupt company takes a lot of time, and you're very well paid lawyers will go through everything with a fine tooth comb to find all the little crumbs that they can then take first bite at.

[JDX]

Yeah you'd think if they were bankrupt they'd struggle to pay the lawyers!

[Stevie]

How does Lehman even still exist?

Two words : "Official Receiver".

[Anonymous Coward]

Aww poor Lehmans

I find it hard to take pity on a company that effectively fucked over the worlds finances. It almost feels like some form of poetic justice.

[Hugh McIntyre]

Re: Aww poor Lehmans

The company as-was no longer exists.

instead, this is presumable the administrators winding up the company (receiver in UK terms) trying to collect as much remaining cash as they can so that all of the other out-of-pocket creditors get a little bit more of their money back, even if this is still less than 100%. As such, not "poor Lehmans" but "poor bondholders who lent money to Lehmans that they will only get a small fraction of get back".

[b166er]

Re: Aww poor Lehmans

Well if people will gamble their money...

Some of us can't put enough food on the table.

[BornToWin]

Intel has no problem...

...with illegal activities for which they have a history of being convicted.

[Anonymous Coward]

Re: Intel has no problem...

Unlike Lehmans eh?

I don't think this supposed $1 Billion shortfall will plug the $300 Billion the failed bank owes.

But maybe it'll pay for Dick Fuld's legal fees as world + dog sues his incompetent ass.

[The last doughnut]

Re: Intel has no problem...

They are not claiming a billion they are claiming the difference between that and what the 50.5 million Intel shares were worth. Something like $150 million. Still not to be sniffed at.

[Anonymous Coward]

Re: Intel has no problem...

But maybe it'll pay for Dick Fuld's legal fees as world + dog sues his incompetent ass.

Banking is full of Dick Folds .. which one are you talking about ?

[Stevie]

Bah!

Presumably as soon as this cash is returned the former executives will pay themselves a bonus from the fund.

[Anonymous Coward]

My fucking heart bleeds for them

These are the same wankers as all the other corporate finance Pump and Dump scam artists (Goldman Sachs et al).

So they got burned? Fuck em.

They've screwed millions of real people over during their lifetime. Maybe Karma is trying to teach their fettered remains a lesson.

[Dan Paul]

The first rule of Bankruptcy - Snag it while you still have access to it!

That was the smartest move that Intel or anyone else could make. They grabbed their money before the receivers or lawyers could.

A wise man once said "Possession is 9/10 of the law" and nothing could be closer to the truth here.

[Anonymous Coward]

"...which also said that Intel would be compensated for any losses if either party ditched the deal early."

So Intel could decide itself to ditch the deal, and would still be compensated? No wonder Lehman went bankrupt, if they had contract negotiators as lax as that...

[ryanp]

you would think that it would be pretty clear in the contract, whether it was for 50.5 million shares or 1 billion dollars. ahh, minor details.