Lehman-Barclay Deal Hid Windfall of $11 Billion

“relief from the sale order is warranted by law whether there was an innocent mistake or deliberate concealment.”

Editor’s Note: When you watch these events unfold, you might begin to realize that the windfall is not to the homeowner who gets the foreclosure thrown out of court, it already happened for the financial players who continue to reap their rewards.

Now if some enterprising soul would help us out by getting hold of the transcripts and exhibits used in those depositions and discovery tools, it would probably contain a wealth of information we could post on here to help others dealing with Lehman, Aurora, BNC, Barclay, etc.

Judge Rules for Lehman in Sale Case

By BLOOMBERG NEWS

A federal judge on Friday rejected a bid by Barclays to throw out a motion by Lehman Brothers Holdings to recover an $11 billion “windfall” the bank supposedly made on the purchase of the bankrupt firm’s North American brokerage.

The case pits creditors and customers of Lehman, which an examiner said used accounting methods that concealed billions of dollars of risks, against Britain’s second-biggest bank. Barclays doubled its profit last year and reported a $4 billion gain on the brokerage in 2008.

Judge James Peck of United States District Court in New York threw out Barclays’ request at the outset of a court hearing, instead ordering immediate opening statements in the case.

The court was never told of the $11 billion gain for Barclays which was known before the sale hearing,” a Lehman lawyer, Robert Gaffey, said at the hearing. “Barclays sat silent in court while Lehman’s lawyers described the deal to the court as a wash.”

Barclays argued that if the judge reopened the sale contract, buyers of distressed bank assets would become scarce. Lehman, which filed for bankruptcy in 2008, said new evidence from 60 depositions and 100,000 documents justify forcing Barclays to give back its gains.

A court victory for Lehman would add money for creditors with claims estimated at $260 billion, augmenting the $50 billion that Bryan Marsal, the chief executive, has said he intends to raise within five years.

Mr. Gaffey, of the New York office of Jones Day, said “relief from the sale order is warranted by law whether there was an innocent mistake or deliberate concealment.

One Response

  1. Some Home Foreclosures are Actually Disguised Real Estate Extortions

    “Some people think that those who fall delinquent on their mortgage debts deserve whatever happens to them. Deadbeats, is what they call us, even when becoming delinquent on a debt was an unavoidable occurrence. Some of us (like me) did not know that marriage failure would bankrupt us; or there would be medical bills; or job layoffs -but yes, some folks lived beyond their means. All the same, this narrative is about what collection on a loan via fraud and deception can do to a person, (too few people know about dark sides of real estate lending and borrowing).. . .” *Read entire article @ http://newsblaze.com/story/20100411123047lawg.nb/topstory.html

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