Commentaries

When derivatives go bad

July 2, 2009

THUD! That’s the sound a busted derivative trade makes when it lands at the courthouse steps.

Lehman’s huge NYC tax bill

June 29, 2009

New York City wants Lehman Brothers’ outstanding tax bill paid off now–or at least before any other creditor gets money in the bankruptcy case.

from Rolfe Winkler:

“There were no discussions on AIG”

June 26, 2009

I'm sorry I missed this CNBC interview last week with Robert Wolf, chief of UBS Investment Bank in the U.S.  There's a remarkably eye-opening sound bite.   (hat tip M. Mayer)

Lehman creditors, you didn’t lose any money

June 18, 2009

You read that right. Peter Wallison, a senior fellow at the American Enterprise Institute, a right-leaning think tank, doesn’t think Lehman’s collapse caused any “substantial losses.”

No fix for the derivatives monster

June 17, 2009

It’s still not clear if the Obama administration has a plan for dealing with the derivatives monster, which is one of the biggest problems regulators must confront in dealing with the potential collpase of a “too big to fail” financial institution.

Goldman fills the Lehman void

June 16, 2009

Lehman’s collapse left a big whole in the world of structured products–a largely unnecessary investment vehicle that’s been all too popular in Europe and Asia. But it seems Goldman Sachs is rushing in to fill the void.

Et tu Schwab?

June 12, 2009

Discount brokerage Charles Schwab may be facing a Lehman-sized headache.

It appears some Schwab brokers were actively selling so-called structured notes–derivative-like investments–that were issued by the now bankrupt Lehman Brothers. The structured notes were pitched as principal protected, meaning investors might not make a lot of money if a strategy failed, but they wouldn’t lose their initial investment either.