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I have the little celebration trinket on my desk for when PWC completed the sale of Lehmans’ assets. They got 130 cents on the dollar for them in the end. Liq
by mattclarkdotnet 4y ago
I have the little celebration trinket on my desk for when PWC completed the sale of Lehmans’ assets. They got 130 cents on the dollar for them in the end. Liquidity matters.
- ketzo 4y agoMan, I wish I could staple this comment to the top of every discussion of SVB.
- Scoundreller 4y agoHow’s that work? Did the stockholders get back the excess returns?
- thechao 4y agoProbably not? The stockholders lost the rights to that value when they failed to maintain oversight of management.
- Scoundreller 4y agoSo who did the excess returns go to? Did Lehman get a big fine or something? Usually in a bankruptcy, if all creditors are paid off, the equity shareholders get the remainder. Usually they get wiped out, but sometimes they do get money back. A bankruptcy crystallizes the debts, but the assets can continue to increase in value. I think GP may have been focussing on one part of pwc’d recoveries but overall, Lehman lost money. Dunno.
- ralph84 4y agoMore like, being able to choose when you get liquidated matters. If an individual investor’s leveraged bet goes against them, they don’t get to say “just let me hold for a while so I can sell when the price is higher.”
- sbierwagen 4y agoUnless your name is Xiang Guangda.