What is the declared capital structure for Lehman Brothers?
Lehman Brothers Holdings Inc (LEHMQ.PK) is suing American International Group (AIG.N) for $9 million in payments the bank says it is owed from credit default swap protection it bought from the insurer on companies including General Motors and Washington Mutual. In a suit filed with a New York bankruptcy court last week, Lehman alleges that AIG is using the bank’s failure as an excuse not to make payments, and that this violates U.S. bankruptcy law. AIG had the option to terminate the CDSs, which used to insure against a borrower defaulting on its debt, when Lehman failed in September 2008, Lehman said in the filing. The company failed to do so in order to avoid paying Lehman the $50 million it would have been owed at the time, Lehman said. The insurer appears to be refusing to meet its obligations until the contracts mature or the value of the contracts swings in AIG’s favor, the bank said. A spokesperson for AIG was not immediately available to comment. Lehman bought protection from A
NEW YORK–(Business Wire)–Fitch Ratings has affirmed Lehman Brothers Derivative Products Inc.’s (LBDP) ratings as follows: –Issuer Default Rating (IDR) at ‘AAA’; –Counterparty rating at ‘AAA’. The Rating Outlook is Stable. Ratings were reviewed following Fitch’s downgrade of Ambac Assurance Corp.’s (Ambac) Insurer Financial Strength (IFS) rating to ‘AA’ from ‘AAA’. At Jan. 18, 2008, LBDP had approximately $317 million in capital, of which approximately $238 million was in the form of a surety bond from Ambac. Fitch believes LBDP remains capitalized at an ‘AAA’ level after reviewing LBDP’s capital structure versus its requirements. While Ambac remains on Negative Rating Watch, Fitch believes that sufficient capital would be available to support LBDP. The surety bond has a flexible structure which will allow Lehman Brothers Holdings Inc. (LEH) to restructure the capital of LBDP if warranted. LBDP is a derivative product company (DPC) with a ‘termination’ structure that serves as a cre
