(European) Lehman administrator seeks $8bn

[muriel_volestrangler]

Source: BBC

The European administrators of failed US investment bank Lehman Brothers have filed a court order in New York demanding $8bn (£4.4bn) is returned from the US to London.

A PricewaterhouseCoopers (PwC) spokesman said the money was needed to pay creditors, salaries, property bills and other day-to-day expenses.
...
Before it went into administration last Monday, Lehman Europe frequently transferred money from its London HQ to its parent company in New York, said the BBC's Joe Lynam.

"The money was usually kept overnight - earning interest - before being sent back to London."

But, as the bank neared its end last Sunday, that did not happen and Lehman Europe found itself down by $8bn, having formally requested the money earlier in the week, our reporter said.

Read more: http://news.bbc.co.uk/1/hi/business/7627956.stm

[maddezmom]

1. wonder how much interest it normally would earn?

[Lucky Luciano]

2. Probably something

close to the Fed Funds Rate. Overnight loans in banking are very common and critical to the system. The recent onset of a total collapse in the system was because short term funding was drying up - nobody wanted to lend money to anyone for any period - no matter how short. That completely breaks a lot of banking models....and the crash approached until $700B was found at the last second.

[CJCRANE]

3. Hey brother, can you spare

$8 billion?

:shrug:

[Buenaventura]

4. suck it up, lehman europe