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Lehman ‘specifies’ Geithner’s testimony | Crisis Insight

Lehman has been requesting Timothy Geithner to appear in its current collateral suit against JP Morgan for $8.6 bln that JP Morgan pushed to its accounts. This time it will be a request to sub peona him even as Treasury insists the current and former  Secretary’s have already deposed numerous times on the topic and it is “unclear why plaintiffs continue to insist on a deposition”..and have provided in the spokesman’s release that he is ready to provide a Declaration in writing on any additional information Lehman might be seeking.

The estate and its creditors contend that they aren’t seeking to ask Mr. Geithner about the New York Fed‘s internal discussions about its response to Lehman’s ailing condition, and that they are seeking only to ask him about his conversations with nongovernment individuals like Mr. Dimon.

The lawsuit’s main argument is that JPMorgan, apprised of Lehman’s fragile condition, improperly profited from making its collateral demands — and also pushed Lehman into bankruptcy.(Dealbook.com)

Leo Kirch’s estate and family are close to a settlement against DB where chair Rolf Breuer denounced them on the networks, precipitating the bankruptcy

Dick Fuld and in the last days of Lehamn, Bart McDade were responding to JP Morgan and the regulators on various risk management and valuation articles between Lehman and the creditors. The most important creditor, J P Morgan is said to have been overzealous on OTC(illiquid) valuation and demanding collateral which overtly tilted the scales as the value of the collateral diminished

Mr. Geithner, then president of the Federal Reserve Bank of New York, spoke with JPMorgan’s chief executive, Jamie Dimon, 10 times in the week before Lehman fell, according to the filing. Many of those conversations, the lawyers contend, must have been about JPMorgan’s collateral demands.

 

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This entry was posted on February 18, 2012 by in Banking, US and tagged , , , , , , , .

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