Two years ago, U.S. Bankruptcy Judge James Peck in Manhattan gave lawyers a blank check to complete a deal with Barclays Plc to salvage the remains of Lehman Brothers Holdings Inc. and prevent further financial catastrophe.
Hedge funds that invest in bankrupt companies are demanding protection from insider-trading lawsuits before agreeing to take part in restructuring talks -- a reaction by the industry’s top performers to an obscure court decision involving the 2008 collapse of Washington Mutual Inc.
Lehman Brothers Holdings Inc. lost a bid to block Bank of America Corp. and Barclays Plc from giving Sam Zell’s Equity Residential an option to buy 26.5 percent of Archstone when a judge said Zell was entitled to the option.
Extended Stay Inc. won approval to move toward selling its assets to Centerbridge Partners LP, Paulson & Co. and Blackstone Group LP after Starwood Capital Group LLC withdrew an objection to the $3.9 billion deal.
Manhattan District Attorney Cyrus Vance Jr. must complete key elements of his investigation before he can decide whether to drop the prosecution of Dominique Strauss-Kahn because of lies told by the maid who accused him of sexual assault.
Barclays Plc took assets it wasn’t supposed to when it bought bankrupt Lehman Brothers Holdings Inc. ’s brokerage two years ago, and never told the judge, said a lawyer for the defunct investment firm.
JPMorgan Chase & Co. , Bank of America Corp. and Ally Financial Inc., defending allegations of fraudulent home foreclosures from customers and Congress, may face the most financial peril from investigations by state attorneys general.