Post by RusskyHoya on Oct 14, 2015 9:48:45 GMT -5
The perversity of large chunks of the financial services sector hits close to home:
For those keeping score at home, this means that Georgetown was hemorrhaging money to Lehman Brothers in at least four different ways:
The full cost is probably even higher, as these calculations do not account for the fees Georgetown paid each time it got into a bond deal, nor for other deals that Lehman did not underwrite. Still, the bill is already north of $140 million, and we’ve only been looking at publicly available records.
- ARS bonds marketed by Lehman cost the university $6 million in interest rates and $8.34 million in debt restructuring costs.
- Approximately $77.8 million in payments on the seven interest rate swaps terminated in May 2009.
- More than $53.4 million in swap termination fees.
- Though still unconfirmed, all signs point to a lawsuit from Lehman to recoup what it claims are underpayments on the “market rate” of its swaps.
The full cost is probably even higher, as these calculations do not account for the fees Georgetown paid each time it got into a bond deal, nor for other deals that Lehman did not underwrite. Still, the bill is already north of $140 million, and we’ve only been looking at publicly available records.
