Lehman was the most vulnerable of the big i banks. It was also the least protected and was allowed to fail.

One little known fact is, as the entire company was failing, it’s European division used some shrewd tricks to relocate its client assets to its sister US entity where they were never to return again. It was many billions and ALL Lehman Europe customer assets. Customers were left as unsecured creditors of the Europe entity, a worthless claim. US customers benefited.

The legal maneuvering done to maintain such fraud, to this day, is one of the most most abhorrent of all in high finance.

But that’s what you get during a carry crash.