Bank failure: lessons from Lehman Brothers

Table of Contents Part I: United States, Dennis Faber and Niels Vermunt 1: The Rise and Fall of Lehman Brothers, Anton R. Valukas, Robert L. Byman, and Daniel Murray 2: The Liquidation of the New York Brokerage of Lehman Brothers, Ken Caputo, James W. Giddens, and Christopher K. Kiplok 3: Safe Harbor Provisions and the Special Treatment of Financial Contracts, Stephen J. Lubben 4: Substantive Consolidation, Thomas M. Mayer 5: Equitable Subordination in Cross-Border Bankruptcy Proceedings, Harrison L. Denman Part II: United Kingdom 6: Extended Liens, Hamish Anderson 7: Protection of Client Money in the UK, David Ereira 8: Treatment of Derivatives, Repo and Stock Lending Positions in the Lehman Proceedings, Simon Firth 9: The Scope and Application of the Anti-Deprivation Rule, Sarah Worthington 10: Reuse and Rehypothecation of Financial Collateral, Joanna Benjamin Part III: Europe 11: Consent Solicitation and the Use of a Composition Plan as a Valuation and Distribution Framework, Dennis Faber, Niels Vermunt, Rutger Schimmelpenninck, and Frederic Verhoeven 12: Valuation of Distressed Financial Instruments, Gareth J. Davies, Mark Helmantel, Dennis Faber, and Niels Vermunt 13: Treatment of Derivative Claims in Cross-Border Insolvency Proceedings, Francisco Garcimartín

This new book analyses the legal and practical issues experienced during the Lehman Brothers litigation, the largest and most complex bankruptcy proceedings in history. By examining the issues the work provides a useful reference source for future large scale and cross-border bankruptcy proceedings of multinational groups. The author team includes experts from the various jurisdictions in which Lehman Brothers was operative, many of whom were involved in the litigation. The authors set out practical solutions to the issues faced, concerning, for example, the use of existing payment and settlement systems for consent solicitation, and filing instructions and insolvency distributions. Economic challenges, such as the valuation of distressed financial instruments, are also considered. Additionally, the book provides a critique of the current law, analysis of the interpretation and scope of core legal principles and makes recommendations for regulatory reform and judicial cooperation. In this book first-hand accounts by key parties in the insolvency proceedings with expertise on the main issues are complemented by the views of selected independent experts to provide the first complete work on this ground-breaking litigation.