- Lehman Whistle-Blower’s Fate: Fired
- Lehman Might Put All Bankruptcy Creditors in Same Payment Pool
- Former chief of Park Avenue Bank charged with TARP fraud
- Hedge Funds May Get $222 Billion Inflows in 2010, Survey Says
- Ex-Merrill Trader Is Banned for Mismarking Positions
Lehman Whistle-Blower’s Fate: Fired – Wall Street Journal
Lehman Brothers Holdings Inc. ousted a whistle-blower just weeks after he raised red flags about the securities firm’s accounting in 2008.
Matthew Lee, a 14-year Lehman veteran, was let go in late June 2008 amid steep losses at the firm as it tried to maneuver through the global financial crisis. Earlier that month, he had raised concerns with Lehman’s auditor, Ernst & Young, that the securities firm was temporarily moving $50 billion in assets off its balance sheet…..
Lehman Might Put All Bankruptcy Creditors in Same Payment Pool – Bloomberg
Lehman Brothers Holdings Inc., which filed an initial plan of reorganization yesterday, said it might resort to a pooling of assets that would diminish returns for lenders with strong claims and benefit those with weaker ones, if creditors don’t agree to its proposals.
More than $830 billion in claims have been filed against Lehman, which has said many are duplicates. Under its proposed reorganization plan, creditors of Lehman units guaranteed by the parent won’t be able to seek more money than they are owed by putting in duplicate claims against the parent, said John Suckow, Lehman’s president, in a phone interview yesterday…..
Former chief of Park Avenue Bank charged with TARP fraud – Washington Post
The former chief executive of a New York bank shut down by regulators last week was arrested Monday for attempting to steal from the taxpayer-funded bailout program, marking the first time criminal charges have been filed in connection with alleged abuse of the government’s financial-rescue effort.
According to a 10-count criminal complaint unsealed Monday in federal court in Manhattan, Charles Antonucci Sr., former president and chief executive of privately owned Park Avenue Bank, orchestrated an elaborate scheme to defraud the bank and its regulators…..
Ex-Merrill Trader Is Banned for Mismarking Positions – Bloomberg
Alexis Stenfors, a former senior trader at Bank of America’s Merrill Lynch unit in London, was banned for at least five years from holding a similar position over mismarking positions to cover up losses.
Stenfors, Merrill’s former head of Scandinavian currency swaps, was banned by the Financial Services Authority for mismarking trading positions by around $100 million in January 2009. Merrill later took a $456 million mark down as a result of the action, the FSA said in a statement today…..
Hedge Funds May Get $222 Billion Inflows in 2010, Survey Says – Bloomberg
Hedge funds globally may attract $222 billion of fresh capital this year, according to a survey by Deutsche Bank AG, marking the first annual net inflow since the global financial crisis hit in 2007.
That will increase hedge fund assets to $1.72 trillion, the annual survey from the German bank shows. Chicago-based data provider Hedge Fund Research Inc. estimated industry assets at $1.6 trillion by December after investors pulled out $131 billion of capital in 2009…..
Tags: Bankruptcy, fraud, Hedge funds, Indictments, Lehman Brothers, Merrill Lynch, whistle blowers
