Lehman’s liquidation process won’t work as well as planned
September 10th, 2008
Failing banks have all used the same system of dumping debt. Form a substitute bank simply planned to fail to dump the bad debt it holds. Simply, Lehman hopes to transfer its billions of bad loans to a company that it hopes will do well, but is miserably doomed from the start. The new company will likely fail in its first few months as writeoffs will be larger than what the company will make. Read more…
