Shareholders were the big losers when investment-banking giant Lehman Brothers Holdings Inc. (OTC: LEHMQ) collapsed in 2008.
Now, the bankruptcy lawyers are positioned to be the big winners. Lehman has already paid its bankruptcy advisers $533.5 million since September 2008, topping the half-a-billion-dollar mark in just 14 months, the investment-banking firm has revealed to the U.S. Bankruptcy Court in New York.
In mid-September 2008 - in one of its wildest and weirdest stretches ever - Wall Street entered a weekend awaiting a government bailout of Lehman Brothers and exited with Merrill Lynch & Co. Inc. agreeing to sell itself to Bank of America Corp. (NYSE: BAC) for nearly $50 billion, Money Morning reported. Lehman stunned investors by announcing it would seek bankruptcy in a bid to avoid a total liquidation after it was unable to find a buyer.