No guarantee from Lehman?

Matt Cameron
31 Mar 2010

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Guarantees have long been granted by parent companies to their subsidiaries, pledging to step in and pick up their obligations should the subsidiary fail, in turn giving comfort to investors that otherwise might be nervous about trading with a small, and perhaps relatively modestly capitalised unit of a global investment bank. These guarantees are now in the spotlight. Creditors of Lehman Brothers Holdings Inc (LBHI) subsidiaries face an expected challenge by the parent company over an apparent

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