Lehman's dodgy documents

Author: | Published: 1 Oct 2008
“They have not been tested through the fires of insolvency”

As the dust settles on the remains of Lehman Brothers, administrators are struggling to pick up the pieces. Rights and obligations regarding assets and trades are not clear; the documents did not anticipate an event of default.

"In all the documentary arrangements with banks, no one really thought about where attention was needed. These documents have not been stress tested through the...