Letter from the Editor :

Friday 23 December 2011

Have the lessons of Lehman been learned?

Have the lessons of Lehman been learned at MF Global?

The early signs are good. The two institutions are very different, of course. Lehman dwarfed every other bankruptcy in history, whereas MF Global was merely a middle-ranking broker-dealer.

The main cause for concern I always had about the Lehman bankruptcy was the breakdown in the working relationship between the US CRO, Alvarez & Marsal, and the London based administrators from PricewaterhouseCooppers(PwC). The decision by Tony Lomas's team at PwC to throw its support behind the A&M Chapter 11 Plan this Summer was a key turning point, as we report on page 5.

The early signs from MF Global are encouraging. The UK-based administrators have met with representatives of the two US trustees. One insider says there is "a perfectly harmonious dialogue." Long may it continue.

Even if the trans-Atlantic relationship becomes any spikier, it is important to remember that we live in a global economy. Our world is more inter-connected than at any time in history. Financial and economic problems are best tackled on a global, cross-border basis.

I mention this as the political leaders of the European 'Community' seem to have taken their cue from a World Wrestling free-for-all. The name calling by leaders who represent our respective countries is particularly depressing. It adds to a general sense of fracturing, of a retreat from multilateralism by national leaders.

This seems designed to win votes at home, but it will do nothing whatsoever to solve the difficult problems of the Eurozone.

Anyway, at this time of intense crisis, I am determined to remain a 'good internationalist'. So I extend best wishes to all our readers all over the world for the holiday season, and look forward to seeing as many of you as possible at the various international conferences in 2012.