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08 July 2010 / Anthony Connerty
Issue: 7425 / Categories: Features , Commercial
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Lehman lessons

Anthony Connerty reports on how ADR has helped deal with the fallout from the collapse of Lehman Brothers

Lehman Brothers, a Wall Street institution that could trace its origins back over 150 years, declared itself insolvent by filing for Ch 11 protection against its creditors in the early hours of Monday, 15 September, 2008.

It was to be the biggest bankruptcy in US history. President Bush would later sign an emergency order providing government insurance to the $3.5trn that was tied up in money market funds. The Lehman collapse affected not only the US: it triggered a global financial crisis.

What led to the collapse of institutions like Lehman Brothers?

Breach of a classic rule of banking

The traditional UK building society takes in deposits from investors and uses those deposits to lend out money to house purchasers, taking a mortgage on the property to secure the money loaned. Care is taken in valuing the property to be purchased and in checking out the borrower: are the borrower’s circumstances—job/wages/commitments, and so on—such as to indicate

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MOVERS & SHAKERS

Penningtons Manches Cooper—Jean-François Le Gal

Penningtons Manches Cooper—Jean-François Le Gal

Penningtons Manches Cooper strengthens international disputes team with appointment of leading arbitration partner

Shakespeare Martineau—Aaron Sanders & Kate Saunders

Shakespeare Martineau—Aaron Sanders & Kate Saunders

Shakespeare Martineau strengthens trust and estates disputes team with new appointments

Bellevue Law—Shannon Moore

Bellevue Law—Shannon Moore

Bellevue Law strengthens employment disputes and international advisory capability with senior associate appointment

NEWS
Developers in areas with poorly performing councils can apply directly to the Planning Inspectorate for permission under section 62A of the Town and Country Planning Act 1990
When does a solicitor’s retainer become a contentious business agreement? The Court of Appeal’s decision in Broadfield Law UK LLP v Barnes shows that listing hourly rates alone will not do, leaving firms and clients uncertain about their rights over bills
MPs cannot simply resign their Commons seats. Instead, they take a nominal Crown office, usually the Chiltern Hundreds or Manor of Northstead, which disqualifies them from sitting
A divorced woman has secured funding to participate in her former husband’s inquest after the Legal Aid Agency reconsidered repeated refusals
The Thirlwall Inquiry has exposed a ‘complete failure’ to protect babies at the Countess of Chester Hospital, but its recommendations must now be put into practice
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