Touchpointers

This has nothing to do with branding and brand touchpoints.  It’s more of a rant. 

Interesting article in the September 6th print edition of Fortune Magazine about former Lehman Brothers CEO Dick Fuld.  The article about Fuld was interesting enough, but the sidebar about the Lehman bankruptcy fees being racked up floored me: $918,000,000 paid so far to 30 law firms, advisers, banks, and consulting firms to settle the mess.  Nearly $1 billion, and (presumably) counting! 

It amazes me how these firms are assured of getting paid, unlike the many good-faith creditors involved who’ll likely get zilch or less.  The amounts are astronomical ($212,000,000 alone paid to Weil Gotshal, lead bankruptcy attorney) given what they’re trying to do which is… what?  Ensure all the creditors get paid back?  Ha! 

I’ve seen it many times before, having been an unsecured creditor (like most of us in business are) in other banckruptcies and getting nadda.  The logic of it all sickens me: the court appoints a bankruptcy team to secure as much cash as possible in order that creditor claims can be settled.  I assume because these bankruptcy professionals are highly skilled (at what?), the court guarantees they’ll be paid handsomely.  In fact, they’re the only folks who are absolutely sure to be paid.  Yes, secured creditors will get something, but most likely not their 100 percent, unlike the bankruptcy team.  Then, as if anything would be left, the unsecured creditors will get their cents on the dollar.

It’s an imperfect system at best, and something else at worst.  But it is the system.

I’m in the wrong business.