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| Lehman Brothers headquarters, New York City. (Photo: Helge V. Keitel) |
by:
Richard D. Wolff, The Guardian UK
| News Analysis
The lesson of Lehman Brothers' failures of fiduciary duty is that large-scale lending should not be entrusted to private banks.
Last week, federal court Judge James M Peck approved the final phase of the Lehman Brothers bankruptcy,
which began with the investment bank's collapse on 15 September 2008.
That bankruptcy, the largest in US history, precipitated the credit
markets' disintegration that cascaded into the global economic meltdown
that has deepened ever since. With roughly $450bn still owed by the
bank, Judge Peck approved that Lehman Brothers
has only $65bn left to settle creditors' claims. The latter must thus
accept just over 14 cents for every dollar Lehman Brothers owed them.
"Thieves," they are probably muttering. READ MORE
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