Welcome to the Great Unwind
Lehman's Fast But Chaotic Unwind in Chapter 11: 900,000 Derivative Contracts Cancelled (even in-the-money), Liquidated, Settled, Offset, Disaffirmed, Cross-Defaulted... Hike!!!!
In Most Cases When There's a Fire in the Theater Popcorn Sales Are Like to Decline: Incremental Losses from Fire Sale Estimated at $75 billion.
Here's a little gem of an article from the WSJ online that snuck by most people toward the waning days of 2008, the "Anus Bankus Horribilus", while most remaining Masters of the Universe were working on their tans in St. Barts or yodeling on the slopes; the early returns from of the post-Lehman derivatives Armageddon show that the firesale liquidation rather than an more orderly Chapter 11 proceeding cost S-O-O-L Lehman stakeholders a C-O-O-L $75 billion. Oh! Did I mention the Federal Reserve got back 100 cents on the dollar on their $63 billion in loans to the the defrocked firm.