BusinessBusiness RecoveryLehman Brothers anniversary timeline

Lehman Brothers anniversary timeline

A year in the life of a collapsed investment bank

Today marks the anniversary of the collapse of Lehman Brothers, widely viewed
as the biggest banking failure in history.

Accountancy Age tracks the timeline from the announcement of its
demise, the appointment of PwC as administrators, its global impact, investor
attempts to sue auditors and many more issues.

You can see read the history of Lehman’s from the recruitment of its CFO Erin
Callan in 2007 to her resignation in 2008, up to the recent announcement in
September this year of PwC trying to reclaim $100bn for creditors.

19 September 2007
US bank takes $700m credit crunch write down
Lehman Brother takes $700m (£350m) hit from exposure to sub-prime
securitised debt

21 September 2007
Callan named as Lehman Brothers CFO
Investment bank appoints Erin Callan to spearhead the financial operations
of the US powerhouse

2 April 2008
Lehman Bros beef up balance sheet by $4bn
Investment bank makes concerted effort to quash concerns about its balance
sheet by raising $4bn after a share issue

12 June 2008
Lehman’s CFO steps down
US investment bank’s CFO goes just six months after being appointed
following disastrous quarterly results

20 June 2008
Ex-Lehman CFOs named in sub-prime suit
Suit alleges bank’s reporting of sub-prime exposures lost shareholders

16 July 2008
Credit Suisse takes on Lehman’s ousted CFO
Callan bags top hedge fund role despite dismal exit from Lehman

27 August 2008
KKR favourite in bid for Lehman Bros
Private equity firm KKR is frontrunner in the bidding for investment banker
Lehman Brothers’ assets

15 September 2008
Lehman files for bankruptcy protection
Lehman has filed for bankruptcy protection after US Treasury Secretary
Poulson fails to bail out the bank

15 September 2008
Lehman work ‘more complex than Enron’
Administrators talk about collapse of investment bank, saying there are
billions of pounds of complex derivative contracts to unravel

15 September 2008
Rover veteran heads up Lehman Brothers administration
Tony Lomas appointed as one of four joint administrators after investment
banking giant collapses and announces plans to file Chapter 11 petition in the

16 September 2008
Barclays still in the ring for Lehman Brothers
Barclays says it is in talks with troubled investment bank about a purchase
of certain assets

17 September 2008
Barclays snaps up Lehmans US arm for £140m
Barclays swoops in for the North American division of the collapsed
investment bank

17 September 2008
Suitors come calling for Lehmans
PwC says it has received expressions of interest for the solvent parts of
Lehman Brothers UK business

17 September 2008
PwC: Lehman staff will be paid
Tony Lomas says 4,500 staff will be paid

17 September 2008
Lehman administration: other institutions helping
PwC partner Steven Pearson outlines help administrators are getting from
other bodies

18 September 2008
Huge PwC team sifts through the remains of Lehman Brothers
PwC sends in 80 experts in an attempt to unravel collapsed giant Lehman
Brothers’ derivatives book

18 September 2008
On the Money with Damian Wild
Lehman Brothers not attractive place to launch career
Poor Business Week.
No sooner had the well-regarded US magazine published its third annual Best
Places to Launch a Career survey than the world of US business was turned on its

19 September 2008
Moulton slams ‘absurd’ accounting for banks’ crisis
Private equity firebrand says ‘absurd’ accounting rules must be partly to
blame for the current market troubles

19 September 2008
Lehmans administrators: Dan Schwarzmann, PwC
PwC partner Dan Schwarzmann is the financial services expert on the Lehmans

19 September 2008
Lehmans administrators: Steven Pearson, PwC
Pearson’s former administrations include Enron Europe, MG Rover and Atlantic

19 September 2008
Lehmans administrators: Tony Lomas, PwC
Tony Lomas has already said that Lehmans collapse will be ‘larger and more
complex’ than Enron or MG Rover – he should know

19 September 2008
Lehmans administrators: Mike Jervis, PwC
Enron veteran Mike Jervis has some prior experience of financial services

22 September 2008
Brown pushes for Lehman Europe’s £4bn return
We are asking and working with the American government to get that money
back to pay salaries, not of high-flying financiers, but of cleaners and people
who are computer operators who would otherwise be denied their money’ – Gordon

22 September 2008
Lehman won’t return client assets for ‘months’
The administrators treat the identification and return of client monies and
assets (client assets) of LBIE as a very important and urgent matter’ – PwC

22 September 2008
PwC pushing for Lehman sell-off
PricewaterhouseCoopers locked in talks with bidders hoping to snap up Lehman
Brothers’ European assets

22 September 2008
One bidder left for Lehman Brothers, says PwC
Administrators say that there is only one suitor in the frame for Lehman
Brothers’ investment banking and private equity businesses

23 September 2008
Nomura is Lehmans sole bidder
Barclays drops out of race to secure the parts of Lehman Brothers UK and
Europe which are still solvent

24 September 2008
Lehmans administration: to the power four
A tricky task is in store for the four administrators of Lehman

24 September 2008
Nomura deal saves 2,500 Lehman jobs
Thousands of employees will be kept on by Asia-based investment bank after
it snapped up the European and middle Eastern assets of Lehman Brothers

1 October 2008
Lehman sheds 750 jobs as sale fails
Lehman has shed 750 jobs after the sale of its European fixed income and
personal management units fails

24 October 2008
Lehmans creditors’ meeting set for 14 November
Creditors meeting could see 2,350 people in attendance as the administrators
set out their stall

27 October 2008
Lehmans job moving slower than expected
Tony Lomas, the lead administrator says winding down Lehman Brothers
European operations has been held up because of the huge number of trades the
bank was involved in

7 November 2008
Lehman employees start $5m class action suit
Lehman employees, led by a computer programmer, have filed a $5m class
action suit against the bank

10 November 2008
Pearson defends Lehman trader bonuses
Steven Pearson, one of the four joint administrators of Lehman Bros Europe
justifies the bonus package given to traders for their help in unwinding the
collapsed bank’s affairs

14 November 2008
E&Y sued over US Lehman audit
E&Y and US Lehman executives sued for misleading investors

14 November 2008
Lehman Bros administration costing £4m a week
Lomas, Pearson, and Jervis set out their stall to creditors in the shadow of
the 02 Arena and report the massive costs associated with the

Continued on next page

17 November 2008
Lehman wind-up leaves Enron pale by comparison
The winding up of Lehman is leaving the Enron debacle pale by comparison,
administrators warn

20 November 2008
Lehman sparks call to shield collapsed banks
PwC partner calls for government re-think of protection offered to crippled
banks, as large number of outstanding trades at Lehman Brothers hampers
administration efforts

20 November 2008
US investors sue E&Y over Lehman woes
A Californian county sues E&Y for its role in the Lehman Brothers
bankruptcy, accusing the firm of ‘recklessly disregard[ing]’ the true state the
collapsed bank’s finances

24 November 2008
Safe haven: Lehmans downfall changes the face of liability-driven investment

The collapse of Lehmans brings a new danger to pension funds: the risk that
counterparties in swap deals could go under overnight. Is there a safe way to do
liability-driven investment?

26 November 2008
Nomura restructures top of Lehman operations
Nomura has made two appointments at top if Lehman EMEA operations

27 November 2008
More ripples from Lehman’s collapse as assets get trapped
Four US investment funds, which have assets trapped in the Lehman
administration, face collapse

5 December 2008
Executives snap up Lehman’s Neuberger without cash
Executives snap up Lehman’s Neuberger Berman in a management buyout without
handing over any cash

25 February 2009
KPMG swamped with interest for Lehman’s HK assets
More than 250 expressions of interested

10 March 2009
AATV: Lehman auditor sued in the US

12 March 2009
Lomas narrowly avoids ICAEW council chop
Tony Lomas avoids being voted off ICAEW council for missing meetings due to

12 March 2009
PwC readies report on Lehman wind-down
PwC to lift the lid on its attempts to claw back assets for creditors of
collapsed bank Lehman Brothers

17 March 2009
PwC push for Lehman’s Scheme of Arrangement
Proposal which Big Four firm hopes will speed up the return of cash to
creditors heard in the High Court

2 April 2009
Administrators call for rule shake-up
Lomas and Kahn say change is essential. David Jetuah reports from the
Accountancy Age Business Recovery Breakfast

15 April 2009
PwC earns £77m from Lehman
Big Four heavyweight is rewarded with bumper pay packet for its efforts to
unravel the highly complex arrangements of the collapsed investment banking

8 May 2009
PwC pulls off sale of Lehman Brothers division
Asset management arm of collapsed banking giant now in the hands of
Neuberger Berman

11 May 2009
Darling to shake up asset recovery rules after Lehmans
Chancellor to revamp insolvency laws to speed up the return of assets to
clients by administrators if another investment bank collapses in the future

28 May 2009
PwC seeks refund on Lehmans’ tax
PwC hope to recover ‘a material sum’ by getting corporate tax refunds on the
back of tax losses sustained after Lehman Brothers collapse

15 July 2009
PwC seeks court approval for Lehman plan
Administrators apply to court to move forward scheme of arrangement for
Lehman creditors

25 August 2009
PwC dealt Lehmans payback blow by High Court
High Court rules it cannot endorse PwC proposal to speed up the return of
assets to creditors, but firm says it may appeal

1 September 2009
PwC fine-tuning $100bn claw-back claim
Administrators putting finishing touches on legal proceedings

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