FDIC Says Bankruptcy Cost Lehman Creditors Billions

Law360, New York (April 18, 2011, 2:06 PM EDT) -- Lehman Brothers Holdings Inc.'s creditors could have received a larger return if the resolution authority provided under last year's Wall Street reform bill had been in place prior to the company's 2008 bankruptcy, the Federal Deposit Insurance Corp. said Monday.

According to a report released by the agency, general unsecured creditors could have received 97 cents for every dollar of claims if the FDIC had been allowed to step in early and force a structured sale of Lehman's assets, as provided under the Dodd-Frank Wall Street...
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