Tag Archive - Lehman Brothers employees

Surviving Bankruptcy: To The Doors of Death & Back in A Day

16 September 2008 by , 5 Comments

Yesterday we struggled to stay afloat a sinking ship in the bloody seas of the Wall Street crisis. Despite our superior-than-average swimming skills, we did not have much hope for survival. Any internal gossip indicating that an acquisition deal might be done had the caveat ‘perhaps,’ a word that did not have much standing given that Lehman Brothers had fallen down on every hope and promise in the last few days. It was no consolation when a colleague called us last evening, upset that the head of M&A at Lehman was out drinking rather than trying to get the Barclays deal done.

There is irony in that as elevated as my mood was at the outset of 2007 when Lehman’s stock price was at an all time high, today I was faced with the reality that our family would be an integral part of history’s biggest bankruptcy. What a remarkable story to pass down to our future generations. Yay! Papa’s famous, came my ten year old’s childlike enthusiasm. She immediately cocked her head to the side and thought again, Wait, famous in a good way or a bad way?

We ran into a bunch of friends at the boulangerie this morning, after dropping the kids off at school. Although the condolence calls have been coming through in a steady stream over the last few days, it is much more awkward to face the dead man walking directly. Uneasiness interspersed the aroma of coffee as people greeted us with feeble smiles that said I feel for you but just do not want to bring anything up.

And then all morning while I tried to occupy myself with my core work of encouraging the world to go green, my inner voices reiterated the same questions: Will Barclays and Lehman reach a deal or not? Will the rest of Lehman Brothers go into bankruptcy tomorrow morning? When should we begin pounding the streets for a job?

Charlie Gasparino, an on-air editor at CNBC stated that working for a British bank with an entirely different culture would be the second worst nightmare for a Lehman employee, the worst being outright unemployment. Call me unadventurous but I am okay with the prospect of a paycheck from London. Perhaps because as an Indian I can say that working for the Brits is a known entity. But I hardly think that Lehman employees would scoff at the chance to get their hands on an entirely new deal book.

The word from the trading floor late morning today was that Bob Diamond, the chief executive of Barclays and Bart McDade, the president of Lehman Brothers were walking floor to floor at Lehman’s offices in New York to announce the acquisition deal: Barclays will buy the U.S. capital-markets businesses of Lehman and as many as 9,000 Lehman employees will find jobs with the U.K. bank. This is minus the bad assets that will be left with the holding company to level to be liquidated according to the bankruptcy court’s instructions.

Breathing room! Can things change in just a day? Have Barclays and I both gotten what we wanted in the first place?

The Mother of All Mondays: An Insider’s Approach to Tackling the Lehman Brothers Crisis

15 September 2008 by , 3 Comments

The blogsphere has labeled today the mother of all Mondays. As I roll out of bed this morning still in a twilight zone from severe lack of sleep over the last 72 hours, a hopeful voice from somewhere inside of me still cries out maybe it was all just a terrible dream. Indeed. Maybe today will be like any other Monday where I can go to work with my morning french roast having dropped the kids off at school.

Alas, I am jerked into reality within moments by the sound of the phone. My husband is a Lehman Brothers employee…..while a Lehman Brothers still exists, that is. The weekend has been fraught with phone calls and emails from his fellow employees following the crisis step by step and speculating on their future at a company which just recently was known to be the fourth largest investment bank on Wall Street. ‘Condolence’ calls from friends and relatives expressing their concern, sympathy and support have left us amazed at the amount of people who are thinking about us.

The press having had a field day with the development of events over the weekend, now talks about their trickle down effect on the economy. On most days I cast my emotional net wide, but today as a Lehman wife, all I can think about is its trickle down effect on my family and on the 24,000 other families that depend on Lehman for their bread and butter. As somebody pointed out on a blog, Bank of America rejecting Lehman in favor of Merrill Lynch feels very much like a groom leaving his bride at the altar in order to run off with her cousin. An eery feeling of uneasiness hangs over our home like a portentous black cloud; the last time we felt like this was during 9/11.

Almost exactly six months ago when Bear Sterns was taken over by J.P.Morgan, my husband tells me that the word on Wall Street is will Lehman be next? And even though Lehman has a solid investment banking business and good liquidity, the truth of the matter is that like any emotionally charged individual, Wall Street is driven by fear and will consistently operate based upon fear tactics. Why does fear propel us into reacting rather than acting? It is the stalwart characteristic of the unstable mind leading to an unstable society.

Why do things like this happen to us, asks my ten year old who is just coming to grips with the fact that life is as much about having bad days as good days. I turn around from the kitchen sink and begin to explain to her that working in the financial markets has far reaching effects on other people, other companies and the economy at large. So if bad decisions are made by someone , somewhere they often impact those who made good decisions; it is a basic law of economics. You’re wasting water, mama, she says eyeing the running tap, don’t you think we should be even more careful about things like this now that Papa is out of a job? I smile and thank heavens that the green values education has paid off!

It is during moments like this that I truly understand what it means to be hybrid: to be someone whose emotional and physical energies are integrated into the psyche and well being of her kids, her partner and her own individual self. My husband will maintain calm because he does not want to upset me, but this is a time when I look to invest even more heavily in the emotional well being of my partner and kids so that we can ease the shock of this mother of all Mondays, and pull together as a family to build Tuesday into hopefully a better and more meaningful day.

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