Monday, September 16, 2013

Today In the Financial Crisis, September 16, 2008: The Unluckiest Guy in the World

We'll be back with more but for now a parable of interconnectedness and contagion.

Songbird Estates through their majority-owned Canary Wharf Group was Lehman's London landlord.
The lease, on over one million square feet of office space, was at the equivalent of $72.82 per square foot, a big chunk of money it accounted for 15% of Songbird's annual revenue.

Fortunately the Songbird risk manager had the foresight to insure the Lehman rent payment but the dénouement reads like the world's worst 'good news, bad news' joke.

Here's the headline:
Lehman's U.K. Landlord Says AIG Insures Rent Payments (AIG; LEH)
The original link has broken but if interested here's the story.