The WSJ this morning reported that Lehman Brothers Holdings Inc's emergency bankruptcy filing in Sept (after the U.S. government declined to bail it out)- wiped out as much as $75 billion of potential value for creditors.
A more planned and orderly filing would have allowed Lehman to sell some assets outside of bankruptcy court protection and would have given it time to unwind derivatives positions.
Lehman unsecured creditors have asserted they are owed $200 billion. How much of that is collected remains to be seen.
The Lehman meltdown touched of a stock market panic and credit crisis and was quickly followed by a government rescue of American International Group Inc, once the world's largest insurer - to the tune of $152 billion - 10X the bailout of the auto industry - with little to no oversight.
Reportedly - that bailout is benefiting European Banks.
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