Lehman is making a move out of BK very soon. Pay attention to the Lawsuit between private homeowners and JPM- JPM was foreclosing on homes they never owned- LBHI retained most if not all of the mortgages in bankruptcy. All assets of value were scalped pre bankruptcy and sold to highest bidder. JPM is going to get rolled in the coming months. Watch the fireworks
JPM was Lehman's overnight credit facility as well as their clearing company- JPM had proprietary info based on Lehman's trades and credit risk. JPM used that material, confidential info to restrict Lehman's Access to credit. JPM then had private meetings with Paulson and Bernanke instructing them Lehman was insolvent(lie) and that they had no collateral for the CDS they had on the books(lie) After this meeting, The TARP Banker Meeting was arranged and Lehman was forced out of previous negotiations for relief. JPM made upwards of 9 billion just on the "Collateral sweep" before bankruptcy, was listed as 1st lien holder on ALL LEHMAN Related Entities. JPM refused to extend Lehman any credit leading up to the meeting, and conspired to negotiate a backroom deal for ML to merge with BOA instead of Boa/Leh.
FNMA and FMCC were sacrificed to make JPM billions of dollars and at the same time pass one of the most overreaching takeovers of a private company by the Treasury. Here is the SEC Docs from FNMA when in 2007 the government started to change the safe and steady business model of Fannie Mae and Freddie Mac
adam, thanks for the post, all of it true, however this would be a reason for desiring JD to be the CEO of Fannie Mae. None of it seems fair to LEH, however it does point toward JD doing a good job in protecting the corporate assets of JPM Chase.