Congressman Calls For Expedited Return Of Lehman Prime Brokerage Assets

Sep 18 2009 | 11:33am ET

There’s not much the U.S. can do about the billions of dollars in hedge fund assets frozen due to the Lehman Brothers bankruptcy proceedings in London. But that isn’t stopping one lawmaker from trying to give the U.S. Congress a voice on the other side of the Atlantic.

Rep. Gregory Meeks (D-N.Y.) has introduced a concurrent resolution expressing the “sense of Congress” that Lehman’s “administrators in the United States and United Kingdom should establish an international framework for coordinating bankruptcy proceedings among the business holdings and operations of each company.” The non-binding resolution also calls for the Securities and Exchange Commission to “dedicate sufficient resources to the matter so as to ensure an expedited resolution serving the interest of American investors in an equitable matter.”

Some US$50 billion in hedge fund assets are tied up in the Lehman bankruptcy. Last month, a British judge rejected a proposed settlement that would have returned some $11 billion to their rightful owners quickly. PwC has warned that if no deal can be reached, it could take years for the claims to be resolved. But Steven Pearson and Tony Lomas, the administrators, said they remain confident that a solution can be found.

Meeks blames the personal liability imposed on the administrator by British law for the snail’s pace of returning the prime brokerage assets, and asks that British authorities consider relieving PwC of those liabilities.


In Depth

Q&A: Brevan Howard’s Charlotte Valeur Talks Strategy

Sep 18 2014 | 11:18am ET

Charlotte Valeur chairs the board of Brevan Howard Credit Catalysts, an LSE listed...

Lifestyle

Griffin Donates $1M To Rauner's Illinois Gov. Campaign

Sep 22 2014 | 9:29am ET

Hedge fund billionaire Kenneth Griffin definitely has a dog in this fight. The Citadel...

Guest Contributor

Top 5 Predicted Outcomes Of CalPERS' Hedge Fund Divestment

Sep 22 2014 | 8:35am ET

CalPERS’ announcement to divest of hedge funds has created a significant buzz...

 

Videos

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

September 2014 Cover

The London Whale: Rogue risk management

Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.