Toomre Capital Markets LLC

Real-Time Capital Markets -- Analytics, Visualization, Event Processing, and Intelligence

The Lucky Lehman Brothers Dozen: Subpoenas

At the Thursday October 16th 2008 hearing before the judge overseeing the bankruptcy of Lehman Brothers, the lead bankruptcy lawyer representing Lehman Brothers, Attorney Harvey Miller from Weil Gotschal, indicated that the firm is presently the focus of three grand jury investigations. According to Attorney Miller, the Southern and Eastern Districts of New York as well as the New Jersey U.S. Attorney offices are looking into various undisclosed aspects of Lehman Brothers' collapse.

In conjunction with these investigations, apparently a dozen subpoenas have been issued to a dozen current and former senior executives. New reports have subsequently suggested that CEO Dick Fuld and former-CFO Erin Callan are included on that list. Others have speculated whether former-COO Joe Gregory, the former head of Lehman Mortgage Capital Ted Janulis and Mark Walsh, the former head of the Lehman CMBS real estate business, might or might have received such subpoenas. CNBC reported that Joe Gregory's successor, Bart McDade had not received such a summons from Federal investigators.

Like many other observers of the demise of Lehman Brothers, Toomre Capital Markets LLC ("TCM") wonders who else was on the list of the lucky dozen to receive such Lehman Brothers subpoenas.