The Work

July 14, 2010 11:44 AM

Jenner & Block Signs Off from Lehman Bankruptcy, $54 Million Richer

Posted by Zach Lowe

After producing a 2,200-page report investigating Lehman Brothers's collapse--and placing varying degrees of blame on Lehman's lenders, its higher-ups, and a shaky accounting practice that one major U.K. firm repeatedly blessed--Jenner & Block chairman Anton Valukas has officially ended his tenure as examiner in Lehman's bankruptcy, according to Reuters

The final bill for Jenner's contributions, according to Reuters and court papers filed late Tuesday: $54.1 million. Manhattan federal bankruptcy judge James Peck released Valukas from the case and issued an order shielding him from lawsuits, Reuters says.

The impact of the examiner's report on several pieces of Lehman-related litigation remains to be seen. The report concluded that JPMorgan Chase and Citigroup contributed to Lehman's liquidity crisis with aggressive collateral calls, and it claimed that "a limited amount" of Lehman assets were "improperly" transferred to Barclays when the U.K. bank purchased Lehman's North American operations, according to our prior reporting. (Lehman is suing Barclays, alleging the U.K. bank got a "windfall" in that deal.) But the report did not conclude that Lehman has clear-cut claims against any of those entities.

The report also spotlighted the role Linklaters played in blessing the now-infamous Repo 105 deals Lehman used to temporarily hide bad assets and debt in order to make its balance sheet look better.

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