First the housing crisis hit lower and middle class Americans, then celebrities. And now Greek life at DePauw University is in jeopardy as the Beta Theta Pi fraternity house has defaulted on a $1 million mortgage provided by—wait for it—Lehman Brothers. With decisions like that, no wonder Lehman was caught in the mortgage mess.
But Beta Theta Pi isn’t taking the prospect of losing their house lying down. They’re filing for bankruptcy protection to renegotiate the mortgage, which seems like just the sort of thing a frat boy future i-banker would do:
According to the report, the fraternity still owes Lehman Brothers Inc. on a $1 million mortgage the investment banking firm provided that Beta Theta Pi used in 1999 for renovations on the house.
“It was a different group of students, a different alumni board and a different housing corporation that did the initial renovations,” chapter president Gred Giometti told the paper. “We’re dealing with the fallout of that, and this is how we’ve decided to do it.”
Beta Theta Pi filed for Chapter 11 protection in the U.S. Bankruptcy Court for the Southern District of Indiana on Aug. 18.
“Rather than just pouring every bit of income the house gets into the mortgage, we’re working on renegotiating the mortgage with the bank,” Giometti said.
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