Tuesday, February 17, 2009

Lehman's Vultures

"Turnaround firm Alvarez & Marsal earned more than $30 million for less than three months of work for Lehman Brothers Holdings Inc., a fraction of what could be ultimately paid to advisers, experts say. ... The Alvarez fees highlight the potentially hefty cost to compensate the range of professionals working on the largest bankruptcy ever filed. ... Two law professors who have studied fees in large bankruptcy cases have separately estimated that the Lehman case could ultimately cost between $800 million and $1.4 billion in professional fees. Seton Hall University School of Law professor Stephen Lubben ... estimates that Weil and law firm Milbank, Tweed, Hadley and McCloy, which is representing Lehman's unsecured creditors, will earn about $400 million. He expects most of the remaining $400 million to to go Alvarez", David McLaughlin at the WSJ, 4 February 2009.

What conflicts of interest? All these clowns should be pushed out of there. I could easily see these fees doubling Macy's total of $500 million. See also my 26 January 2009 post: http://skepticaltexascpa.blogspot.com/2009/01/we-are-all-experts-now.html.


VBPOutSourcing said...

That is nuts. With the amount of professional fees being paid, you would think that would be enough to have kept them floating long enough to salvage their company. But who knows.

Independent Accountant said...

For only 1% of the pelf I would close my eyes to this. 1% is all I ask.

Anonymous said...

Fee bonanza! Vulture picnic!

What does Fuld do? Wait to be deposed? Will he wear stripes?