Two Lehman Brothers Units Need Help to Avoid Failing
Meanwhile, the Financial Crisis Inquiry Commission continues to piece together the events that led up to the financial industry meltdown. On Wednesday, it heard testimony from former Lehman Chairman and CEO Richard Fuld, who blamed the government for refusing to rescue the investment bank, even though it rescued many other financial institutions later, and for mandating that the firm file for bankruptcy. Lehman filed for Chapter 11 protection on Sept. 15, 2008, the largest such filing in history. Today, the company's difficulties continue.
In a filing with a U.S. bankruptcy court on Wednesday, Lehman said it was faced with a choice of either allowing the units to fail, which would result in estimated losses of between $1.2 billion and $3.6 billion, or injecting capital into their balance sheets to recover significant value for its creditors.