It is an inarguable fact that someone, somewhere makes money on every disaster. But the story in a recent New York Times article about the windfall profits being made by bankruptcy attorneys is setting new heights (or depths depending on your point of view) to test this adage. www.dealbook.blogs.nytimes.com/2010/05/03/who-knew-bankruptcy According to that article, “The lawyers, accountants and restructuring experts have already racked up $730 million in fees and expenses, with no end in sight.” for the Lehman Brothers bankruptcy alone. Fees include hotel fees, as much as $864 a night, $364 dry cleaning bills, and $500 a day limo fees for the people called in to “rescue” these assets. There seems to be no limits to fees and expenses that can be charged against the carcass of this or any other major company in bankruptcy. If there was anything left at Lehman, the cure is certain to eat it alive.
By Sam DelPresto