Lehmans

sabretoothtigger

I know a couple places that'll pay money for aluminium, just needs alot of cans

blackanchorage

blackanchorage wrote: »

I posted earlier a question about whether a liquidator can cherry-pick whose salaries are paid. I resigned from Lehman in August, and finished on 25 September... and I have not been paid, unlike the people still working there. Does anybody know if this is legal?

I have now been paid for the time from when the administrator came in (14 September), to when my notice period ended. For the first two weeks of September I can claim £330/week from the government, and add myself to the list of unsecured creditors for the rest.

Not great, but for a while I thought I was going to get nothing (the communication was awful), so getting some was a relief.

Regards

GDB2222

blackanchorage wrote: »

I have now been paid for the time from when the administrator came in (14 September), to when my notice period ended. For the first two weeks of September I can claim £330/week from the government, and add myself to the list of unsecured creditors for the rest.

Not great, but for a while I thought I was going to get nothing (the communication was awful), so getting some was a relief.

Regards

Just as importantly, have you got another job?

blackanchorage

I resigned from Lehman because I was moving to another bank :eek:

So I am certainly luckier than those that were, or will be, made redundant - though I think (and hope) they were all paid for the whole of September. Though from what the administrators said, they won't get any redundancy, apart from the government cover.

Regards

posh*spice

Many analysts and commentators now seem to be of the opinion that it was a mistake to have let Lehman's go bust.

Tomorrow they need to settle hundreds of billions of default swaps and this could be yet another day of disaster in the city.....another interesting day in the city

mewbie_2

I'm glad this thread is still running. You may not be.

"I'm Lehman's... on a jet plane... don't know.. if I'll be back again"

Generali

Yeah, good luck with the job hunt blackanchorage.

I was up in The City seeing some old mates yesterday and times seem to be pretty tough for those looking for work right now. In some sectors anyway.

posh*spice wrote: »

Tomorrow they need to settle hundreds of billions of default swaps and this could be yet another day of disaster in the city.....another interesting day in the city

For my money, the worst case scenario has always been that a CDS chain unravels everything. Someone goes bust so generates a CDS default then someone else can't afford to pay out. That means that other people then aren't hedged and also have to pay out on two CDS defaults. In the end, everyone is bust and nobody can pay.

Warren Buffet quotes Mark Twain when he talks about trying to unwind 100 or so derrivatives positions held by an insurance company he bought:

There are some lessons that can only be learned by experience like carrying a cat home by the tail.

chucky

posh*spice wrote: »

Many analysts and commentators now seem to be of the opinion that it was a mistake to have let Lehman's go bust.

Tomorrow they need to settle hundreds of billions of default swaps and this could be yet another day of disaster in the city.....another interesting day in the city

tomorrow isn't when they need to settle ANY default swaps, so it will be extremely unlikely that it will even bother the City - please don't try and write history... plus results will be published at approx 3:30 UK time.

tomorrow is the day that the auction that will allow the calculations of the Recovery Rate that will be on Lehmans as a Reference Entity. The Recovery Rate is then used to calculate the default amounts payable on these trades.

Fannie and Freddie were 90% of the original value I believe, so only a 10% loss on these trades.
Lehmans is a bit different.

chucky

but at a guess I would say the Lehmans Recovery Rate would end up being about 10% average or maybe more across all the Bonds.

this is just a guess though.

Generali

chucky wrote: »

tomorrow isn't when they need to settle ANY default swaps, so it will be extremely unlikely that it will accept the City - please don't try and write history...

tomorrow is the day that the auction that will allow the calculations of the Recovery Rate that will be on Lehmans as a Reference Entity. The Recovery Rate is then used to calculate the default amounts payable on these trades. This will be published at approx 3:30 UK time.

Fannie and Freddie were 90% of the original value I believe, so only a 10% loss on these trades.
Lehmans is a bit different.

Presumably it's a relatively simple calculation to work out your gross and net exposures from there - I have no idea as I've never worked in CDSs but presumably the net exposure is something like net number of contracts held multiplied by the amount payable per contract.

Gross would be a little more complex but should only be significant if someone else goes bust as a result of this or if the Icelandic banks or Lehmans held a large position in Lehmans CDSs.

If a bank suspects it's insolvent as a result then they in theory they should issue an RNS although in practice I guess they'll be off to the treasury looking for a load more of our children's money.

Sorry for all the jargon, the above is aimed at chucky. These aren't loaded questions BTW, just an attempt to educate myself.