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Nice. Those might come back dressed as a Rose someday.
Cheers and keep it going.
I was able to get 2000 at .135 and that's it.
I seemingly cleaned up the offer today late.
Only filled a partial of 7695 @ .14
I know alot of you nibbled on these $50 Face Pref's today as well.
There was some really consistent buying in small chunks all day.
I tried buying alot .14 but that's all they gave me and the MM ETMM stepped away from the offer.
Will see if I can get some more tomorrow.
Cheers
Mortgage Bonds ‘Leading the Pack’ as Debt Rallies (Update1)
http://www.bloomberg.com/apps/news?pid=20601087&sid=aNnz1ncV6zDI&pos=7
We are about to come FULL CIRCLE! According to Bloomberg now the Home Mortgage Bonds are getting a much better bid.
I hope A&M gets those claims settled soon! Looks like the Lehman assets should be getting a bid. Even the OPTION ARMS...the worst perfoming mortgages out there are improving at a rapid rate.
Keep the Faith...
Coach T
MORE PROOF IT CAN BE DONE!
Pilgrim's Pride exits bankruptcy protection...
http://finance.yahoo.com/news/Pilgrims-Pride-exits-apf-2928166957.html?x=0&sec=topStories&pos=2&asset=&ccode=
"Even stockholders, generally left out in the cold in a bankruptcy, are getting something. Pilgrim's Pride, based in Pittsburgh, Texas, is redistributing shares not being sold to JBS to current stockholders."
Coach T
LEHDQ Bid: 0.20 Ask: 0.24 Last: 0.20 ($): 0.00 Vol: 200
I know they are manipulating this biggly.. If my other Q stock runs a bit, will be adding biggly in all Leh categories except the lehman commons!! Cap trusts and prefs have a huge upside potential!!
Whats the PPS,,i cant get it for aome reason,,,BIG TY GODFATHER,,and GLTA
LEHMQ soaring now.. Our time should come soon here!!
HOPE YOU ARE RIGHT COACH
YOU SEEM TO BE A GREAT PERSON
KEEP FAITH IN YOUR COUNTRY
MORE PROOF LEHMAN ASSETS USED AS COLLATERAL ARE INCREASING IN VALUE! THE NEWS JUST KEEPS GETTING BETTER!
Bundesbank Lehman Asset Sale to Benefit From 6-Month Bond Rally
http://www.bloomberg.com/apps/news?pid=20601100&sid=aK6nPi.j2kuE
Prices in the 2.2 trillion-euro market for bonds backed by consumer debt, corporate loans and real estate have rallied amid growing investor confidence that the worst of the global recession may be over. Asset values had plunged to record lows after securities linked to U.S. subprime mortgages tumbled and credit markets began to freeze in August 2007.
Yield spreads on top-rated prime mortgage-backed notes have narrowed to 155 basis points more than benchmark rates, down from 425 at the start of the year, JPMorgan Chase & Co. data show. Yields, which move inversely to prices, are near the lowest since July 2008. A basis point is 0.01 percentage point.
The question is how much have prices rallied???
Thanks to all the men and women serving and who have served in the defense of our country!
Coach T
AND THE CYCLE CONTINUES TO COME FULL CIRCLE!
U.K. House-Price Gauge Advances to Near 3-Year High (Update1)
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aoGFi39RqBWM
Nov. 10 (Bloomberg) -- A gauge of U.K. house prices rose to the highest level in almost three years in October, led by London, as a shortage of homes for sale intensified.
The number of real-estate agents saying prices rose exceeded those reporting declines by 34 percentage points, up from 21 points in September and the most since December 2006, the Royal Institution of Chartered Surveyors said in its monthly survey today. A separate British Retail Consortium survey showed stores posted their best October sales growth since 2002.
“There is a lot of evidence to suggest that there is a fair degree of momentum in the market,” Simon Rubinsohn, chief economist at London-based RICS, said in an interview with Bloomberg Television. “The context of all of this is still going to be a general shortage of desirable property.”
Buyers are returning to the housing market after values fell as much as a fifth from their peak in 2007. Bank of England policy makers last week slowed the pace of bond purchases amid signs that rising property and stock markets are helping the economy shake off its worst recession in at least three decades.
The sales-to-stock ratio, a measure of slack in the housing market, rose to 30 from 29 in September, the report showed. Average sales per surveyor over the last three months climbed to 19 from 18.5.
The upturn in house prices was led by the U.K. capital, where the net balance of surveyors saying prices rose jumped to 95 points, the most since December 1996, RICS said.
Limited Supply
“We are continuing to see an increase in demand from potential purchasers and with only a limited supply of properties coming onto the market, prices are continuing to rise,” said James Perris at De Villiers Surveyors in central London.
Services, manufacturing and house prices are showing signs of recovery as consumer confidence grows. Mortgage approvals climbed to their highest level for 18 months in September, and the Department for Communities and Local Government said today that British house prices rose 1.2 percent in the same month compared with August.
The average rate on a U.K. home loan fixed for two years with a 25 percent deposit, the most popular type of mortgage, fell to 4.33 percent from 4.47 percent in September, the Bank of England said today. Cheaper mortgages may allow more homebuyers to access the property market and help sustain higher prices.
A separate British Retail Consortium survey released today showed stores posted their best October sales growth since 2002. Sales at U.K. stores open at least a year rose 3.8 percent last month from a year earlier, the BRC said. Sales dropped 2.2 percent in October 2008 after the collapse of Lehman Brothers Holdings Inc. sent consumer confidence tumbling.
Rising unemployment may yet weigh down on spending and home values. London-based broker Savills Plc said on Nov. 6 that house prices probably will fall as much as 6.6 percent next year, reversing an estimated 3.7 percent gain in 2009.
To contact the reporter on this story: Svenja O’Donnell in London at sodonnell@bloomberg.net.
How do you think that LBIE portfolio that no one has heard about is doing now??? UK HOME PRICES THE HIGHEST IN 3 YEARS!
The Perfect Storm is Coming...Keep the Faith.
Coach T
None one involved, including the judge will respond to you as far as Lehman is concerned since you are not an involved party. It would be considered improper for them to reply.
if i was fluent in english i will call, mimacpole, the judge,
but i'm not enough fluent to call.
if i was living in america, i will call too but anyway i found the website but i didn't find The Mor document yet
may be later if nobody wants to do it i will call to ask or will send an email : probably i will get no answer
i think i will wait the next mor and call, micmacpole
and if i got something i will do like coach tequila i respect a lot despite my low english style, i will put it on the website
saudek,
You need to do your own phone calls and research--don't try to have others do your research for you. If you are not comfortable in gambling here sell you shares and invest elsewhere.
It is an absolutely absurd construct to think an investor would call a bankruptcy judge and ask him the outcome of a case before he renders a decision. Don't waste our time with such nonsense.
dear coach tequila
if you call the judge i'm sure this guy know already what does he plan to do with us
call him and ask him for me please,
what do you think about the big claim of fannie mae, 15.8 billions $ more than the actual cash of the company :
what did he say already : lehman is full of cash, i suppose the judge joking with us ....
call him and ask him if we are going to be paid in full face
for the lbhi website, where is the adress ? www. . com
Saudek:
No one has all the answers right now...there simply has not been enough information available.
I think you should go to the LBHI website at EPIQ and look at the MOR that has the 12/31/08 balance sheet and see the different assets and liabilities for yourself.
Coach T
sorry coach tequila but i think i don't understand how work a bankrupcy .
tell me if i understand good : there is LBHI who is going to pay what they can pay for the claims
question : there isn't enough money for all of them, so it will be compromise
The MOR is going to move up and down depend of the claims
what i don't understand is : mor should be fixed : not depending of the claims because : lehman filed chapter 11 to be protected from claims : so what is left in the chapter 11 ?
lbhi at 100 billions : this is for the claims, isn"t it right ?
Really you see i don't understand at all how it is working :
if you can explain me
thank you by advance because i saw somme people said 100 billions from lbhi are assets (i don't understand how chapter 11 protect lehman against all those claims )
what i don't understand coach tequila, why are we in bankrupcy if there is 100 B to LBHI ?
i suppose those 100 billions will pay part of claims
Not a BK expert just try to psot the facts and let people make their own conclusions.
There are far too many questions currently that the markets are wrestling with. Alot of it has to do with the tremendous amount of derivatives and other contracts. Also how does the reconciliation take place with the intercompany recievables and borrowings owed by entities to LBHI. That alone is estimated to be 100B to LBHI according to Mr. Marsal in the July Creditors Meeting ($50B of each).
Also, I believe that the liquidity being offered by Second Market and others for the buying and selling of Lehman Claims is taking funds away from interest in the bonds until more concrete information is available.
Coach T
dear coach tequila
i would like to help you but unfortunatly i'm not enough good to manage to do what you ask
my question is : you are confident but unsecured bonds traded at 0.17 something like that
despite this low level you believe we can get full payment
if A > L
for me it is unclear what is going to happened : many funds bought some stocks. I suppose : they believed lehman can go out chapter 11 .
I hope lehman wil survive as it is. But it is a dream.
A big question for me : in wamu bankrupcy, we can see unsecured bonds at 70 % but it is normal because A is closed to L .
But in lehman case, A is already closed to L, so we should already be at 70 % too. A = 295, L = 325 , it is 90 % ratio
and why unsecured doesn't trade at this ratio ?
this is why i'm less confident despite the A closed to L
already
are you expert in bankrupcy, or it is your first bankrupcy
COACH T, I want to thank you for all your GREAT posts
Wow...that alot of questions. I will do the best I can.
First of all, it is very hard to see the valuations drop daily. However, if you look across the entire financials the whole group topped out in September and have been correcting the gains from the March lows. This pullback is not just the Lehman group.
I think that ALL I-HUBBERS should go to the LBHI website, pull up the first 50 claims and then open the "Image" link that is included with each posted claim. These do not get posted without being researched. Virtually all of them are balance sheet or derivatives related.
Please if some of you would do that. Maybe split them up in the first 15 for one of you then the next 15, etc.
That helps me and I think it would help all of the you. Every claims that I randomly pull up can be related to an outstanding financial instrument that was issued by one the LEHMAN entities and can be translated to the B/S.
I really would like some feedback from some of you on this!
I still have over 2.8M shares of various Preferreds and trust shares of my original $2.9M.
Do not look at any numbers on the LEHMANs that are not issued by the company itself thru A&M. The only numbers that have been released are on the Monthly Operating Reports MOR's and posted at the LBHI website thru EPIQ. No other info is reliable. The $8 book value is not reliable!
I have confirmed this twice with Holly Dice at A&M. Reporters take pieces of information to tell whatever story they want to highlight. Use the MOR's only!
A&M should know a better handle on the total claims allowed by end of year. The Examiner will be revealing his investigation in Feb. 2009 and new balance sheet numbers (hopefully YTD) before end of year. Personally, I think they will be out on Nov. 15.
Do your own due diligence...this is a highly speculative situation.
Coach T
do they need to use their 15.7 billions dollars to pay the claims ?
what's difference between claims and balance sheet ?
is it enough to see the new balance sheet ?
i would like to know your point of view on the manner to calculate : the lehman 'case is different or we have also to include all the claims :
i mean lehman has only 15.7 billions dollars and claims are concentrate in lbhi and ? .
how all of these are going to be dealed :
i'm sared to see our stocks going down each day. It doesn't feel so good to me.
did you sell some of your position ?
Back of the envelope calculation (very rough numbers from someone that should not even be attempting to try to estimate value left over for the preferreds. Do your own DD.)
The proforma post bk shows a book value of $8 bil. If CIT were to sell for 1.5 times book that would lead to a market cap of $12bil.
Those claims above ours that are not going to be paid in full, but at 70 cents on the dollar is about $36.7 bil. At 70% ($25.7bil) that leaves a balance of $11 bil that they will be due in stock. That leaves $1 bil to cover the preferreds shares claims of about $2.8 bil in Series A,B, and D. That is about 35 cents on the dollar in CVR.
Of course if CIT sells for not much less than 1.5X book we are screwed. More than 1.5X book and we get very happy.
Again, these are very rough numbers. Just wanted to share my thought process.
Leader of new KDB group spearheads Asian expansion
http://joongangdaily.joins.com/article/view.asp?aid=2912252
Now is the perfect time for Korean financial companies to expand their leverage around the globe, with traditional powerhouses in the United States and Europe still reeling from the aftermath of the economic slowdown.
At least that’s the hope of the chairman of the soon-to-be-privatized KDB Financial Group, Min Euoo-sung.
In an interview with the JoongAng Ilbo, Min also expressed disappointment at missing the chance to take over Lehman Brothers after its collapse last year, since Nomura Holdings’ takeover of Lehman eventually helped the Japanese firm rapidly expand.
KDB Financial Group officially began operations this month after the state-run Korea Development Bank separated its “policy financing” operation, offering low-interest loans to small and midsized exporters and to industries strategically backed by the government, from its other commercial sections. The former went to the new Korea Finance Corp., and the latter to KDB Financial Group.
How do you feel about the failed bid to take over Lehman Brothers?
"I still feel so bad about missing that opportunity. A global investment bank like Lehman has such excellent business networks all around the world, with which enormous amounts of intelligence and good information can be gathered. If you can get the same information only an hour earlier than others, you can often change the whole business situation, and more accurate information can also help you make far better decisions. Nomura Holdings had long tried to expand its overseas sales to little avail, but now it reaps more profits in overseas markets than it does domestically within just a year after it took over Lehman."
Speaking of the aftermath of the financial downturn, some people say we need to be more cautious and take more time before moving aggressively to explore foreign markets.
It’s quite the contrary. Now is the perfect time.
KDB has played the role of one of Asia’s biggest and most successful private equity funds by taking over ailing companies, normalizing their operations and selling them later at a higher price. LG Card, Daewoo Shipbuilding and Marine and Hynix Semiconductor are good examples of this practice. There will be more companies like these in Asia, and there will be demand for a bank that can deal with such ailing companies. KDB, with ample experience helping ailing Korean companies for the past decade, is better positioned to step forward.
Are you thinking what I am???
Coach T
I don't know much about IDMC...
WAMPQ, if bonds stay at $.90 then seems reasonable that those should payout...IMO.
I think Lehman will release its new balance sheet. Conditions seem to be steadily improving which reflects increases in both price and more importantly liquidity in the corporate credit markets.
Feels good to me...
Coach T
KKR Financial Triples Income as Credit Demand Drives CLO Rally
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aXp85oE4JnEM
Excerpt...
The lowest-rated pieces of CLOs, which pool high-yield, high-risk loans and slice them into securities of varying risk, have climbed to 30 cents to 40 cents on the dollar from less than 10 cents seven months ago, according to a Nov. 4 report from Morgan Stanley. Those ranked BBB have risen to 59 cents from 6 cents on the dollar in the past six months.
San Francisco-based KKR Financial has increased more than 12-fold to $5.18 as of yesterday, since reaching a low in March of 42 cents. Shares tumbled 89 percent in 2008.
‘Improved Market Conditions’
“During the past nine months, we have significantly improved our situation as a result of improved market conditions and some pro-active actions,” KKR Financial Chief Executive Officer William Sonneborn said yesterday during a conference call with investors.
CLOs, a form of collateralized debt obligation that invest in leveraged loans, were popular before the credit markets seized up in late 2007 because they offered investors higher yields than similarly rated securities. The $58 million AA ranked portion of KKR Financial CLO Ltd. sold in March 2005 paid interest at 45 basis points more than benchmark bank rates. That compared with a spread of as little as 36 basis points for companies of the same grade, according to Merrill Lynch & Co. indexes. A basis point is 0.01 percentage point
More Evidence of Improving Conditions.
Coach T
Weil Turns Over Documents to Barclays Counsel in Lehman Bankruptcy Litigation over Barclays Deal
http://www.law.com/jsp/tal/digestTAL.jsp?id=1202435242215&Weil_Turns_Over_Documents_to_Barclays_Counsel_in_Lehman_Bankruptcy_Litigation_over_Barclays_Deal
By Alison Frankel
November 06, 2009
No wonder Weil, Gotshal & Manges brought in conflicts counsel from Jones Day to look into Lehman's hurry-up sale of its crown-jewel assets to Barclays. Weil's own work on the deal, according to Zach Lowe's terrific scoop at The Am Law Daily, is now being scrutinized by Barclays' lawyers.
As we've previously reported, in September, Jones Day filed a fiery motion with Manhattan federal bankruptcy court judge James Peck, asserting that the sale to Barclays, which took place in the first days of Lehman's bankruptcy, was tainted by secret dealings between Barclays and some Lehman execs. Jones Day claimed Barclays received an $8.2 billion windfall in the deal. Its motion asked Judge Peck to modify his order approving the sale, arguing that he okayed it based on "an inaccurate record due to mistake, inadvertence, or misrepresentations to the court."
Lehman's counsel on the deal (as Ben Hallman vividly recounts in this American Lawyer story), was Weil Gotshal. The Jones Day motion said that Lehman's attorneys knew nothing about the alleged secret agreemet at the time the deal was struck. But Lowe reports that Barclays counsel from Boies, Schiller & Flexner want to test that assertion. They've responded to the Jones Day motion with a subpoena to Weil, demanding documents related to the Jones Day motion.
Weil has apparently complied with the subpoena, according to Lowe. Under the terms of a protective order filed Thursday in the bankruptcy, Weil can designate some documents as "confidential," and those will held under seal by Judge Peck. "But the order says that Weil 'shall not designate as confidential material that relates to subject matters' addressed in Lehman's request that the Barclays deal be modified," Lowe reports.
No one from Weil, Jones Day, or Boies Schiller commented to Lowe. But we can't wait to see what happens next.
FYI
Coach T
dear coach tequila
i have three preferred :
idmpq
lehpq
wampq
i would like to know your thoughts about them
i think lehman will still exist and they won't spinn off the company. Idmpq should get 800 millions dollars, so it should worth 50 $.
about wampq, i hope like for the two others one, to get 1000 $ but i don't know when.
about lehman, what is your feelings, if assets > liabilities is it enough to see a big run and join the maximum 1000 $ ?
Yes sir. This mean new new securities or ones created after the original IPO dates? Also, 6K traded at .25 this am then 50K at .15 which was below the bid. Crazy.
Are these statements in all of the regular Preferreds C,D F, J??? Anyone?
Holders of Series G Preferred Stock, together with holders of such other preferred stock entitled to elect preferred directors, voting together as a class, may remove and replace either of the directors they elected. If the office of either such director becomes vacant for any reason other than removal, the remaining director may choose a successor who will hold office for the unexpired term of the vacant office.
So long as any shares of Series G Preferred Stock remain outstanding, Lehman Brothers Holdings will not, without the vote of the holders of at least 662/3% of the shares of the Series G Preferred Stock:
•
authorize, create or issue any capital stock of Lehman Brothers Holdings ranking, as to dividends or upon liquidation, dissolution or winding up, senior to the Series G Preferred Stock, or reclassify any authorized capital stock of Lehman Brothers Holdings into any such shares of such capital stock, or issue any obligation or security convertible into or evidencing the right to purchase any such shares; or
•
amend, alter or repeal the certificate of designations for the Series G Preferred Stock, or the certificate of incorporation of Lehman Brothers Holdings, whether by merger, consolidation or otherwise, in a way that adversely affects the powers, preferences or special rights of the Series G Preferred Stock.
Thanks
Coach T
Thanks Coach..
http://www.marketwatch.com/story/principal-financial-quarterly-profit-doubles-2009-11-02-173800
SAN FRANCISCO (MarketWatch) -- Principal Financial said late Monday that quarterly profit more than doubled as the 401(k) specialist benefited from the market rebound and increased sales.
Third-quarter net income available to common shareholders was $184.7 million, or 57 cents a share, versus $90.1 million, or 35 cents a share, a year earlier.
Operating earnings, which exclude net realized investment gains and losses, were $238.7 million, or 74 cents a share. Principal /quotes/comstock/13*!pfg/quotes/nls/pfg (PFG 25.11, +0.10, +0.40%) was expected to make 64 cents a share, according to analysts polled by FactSet Research.
Principal Financial was hit hard by the financial crisis last year. As stock markets fell, the company's assets under management declined, lowering the fees it collects for running retirement accounts and investment funds. The company's own investments also dropped in value as credit markets toppled, sparking concern about its capital levels.
However, Principal raised more than $1 billion selling new shares this year, easing those capital concerns. The rebound in markets also helped boost assets under management and sales, while reversing some unrealized losses in the company's investment portfolio.
Principal said assets under management rose 9% to $280.4 billion by the end of the third quarter.
The company's three main retirement and investment products -- full-service accumulation, Principal funds and individual annuities -- generated $2.7 billion of sales during the third quarter.
"We're seeing some early signs of progress," Principal Chief Executive Larry Zimpleman said in a statement. "We are cautiously optimistic about sales and flows as we move into 2010."
Book value, or the value of Principal's assets minus its liabilities, jumped 35% to $21.85, or $5.66 a share, in the third quarter, the company noted.
Principal's book value per share has nearly tripled this year, as narrower credit spreads have driven down net unrealized investment losses by more than $6 billion, before taxes, Chief Financial Officer Terry Lillis said.
Principal shares have climbed almost 11% so far this year.
Clearly a trend is in play...keep your eye on the horizon. IMO.
Coach T
AIG Earnings Estimate Increased by Credit Suisse (Update3)
Nov. 2 (Bloomberg) -- American International Group Inc., the insurer bailed out by the U.S., had its third-quarter earnings estimate tripled by Credit Suisse Group AG on gains in investments including derivatives and hedge-fund holdings.
AIG will earn $4.50 a share, compared with a prior estimate of $1.40, Credit Suisse’s Thomas Gallagher said today in a note to clients on the New York-based insurer. The company climbed 21 cents to $33.83 at 1:56 p.m. New York Stock Exchange composite trading, after rising as much as $2.86.
Insurers Lincoln National Corp. and Genworth Financial Inc. benefited from rebounds in fixed-income holdings, including bonds tied to mortgages.
Gallagher said AIG will post a gain of about $2.5 billion at the derivatives unit that brought the company to the brink of collapse last year with bets on home loans. Hedge fund and private equity investments probably earned about $700 million in the quarter, he said.
“We would expect to see a strong headline earnings number for the third quarter given the broad-based asset price recovery,” Gallagher said in the note. He rates the shares “underperform” and has said there may be little value for shareholders after the insurer repays its debts under the $182.3 billion government bailout.
The insurer’s book value per share, a measure of assets minus liabilities, may have increased 73 percent in three months to $38 as of Sept. 30 as previous unrealized investment losses reversed, Gallagher said.
Unrealized losses, which don’t count against earnings, are monitored by ratings firms, regulators and investors as a measure of financial strength.
Corporate Debt
AIG held more than $350 billion in bonds as of June 30, with almost 60 percent in corporate debt and residential mortgage-backed securities. Corporate bonds returned 9.58 percent in the third quarter after earning a 13 percent yield in the second, the best quarterly performance, according to Merrill Lynch & Co. data going back to 1997.
Some U.S. home-loan bonds reached prices almost double their March lows after a rally in the third quarter as debt markets recovered. Typical prices for Alt-A securities rose to 60 cents on the dollar from 35 cents in mid-March, according to Barclays Capital data.
The $1.4 trillion hedge-fund industry is recovering after posting a record loss averaging 19 percent in 2008, according to data compiled by Hedge Fund Research Inc. Funds returned 17 percent in the first nine months and attracted $1.1 billion in new investments, ending a one-year streak of net withdrawals, the Chicago-based firm’s data show.
Profit Rebound
A calm hurricane season so far has assisted property- casualty insurers. The third quarter yielded a single U.S. landfall, Tropical Storm Claudette, which struck Florida in August. By the end of September last year, Hurricane Dolly had hit Texas, Gustav came ashore in Louisiana and Hurricane Ike lashed nine states, killing more than 100 people and helping to push the industry into a $9.9 billion net loss in the period, Verisk Analytics Inc. said.
The insurer posted a $1.82 billion profit in the second quarter, its first since 2007, on narrowing investment losses and a rebound in the value of some derivatives. Before that, AIG had reported more than $100 billion in net losses driven by declines on credit-default swaps and investments.
AIG, which has climbed about 7.6 percent in New York trading this year, is expected to report third-quarter results this month. The company may earn $2.39 a share, according to the average of 3 analysts surveyed by Bloomberg.
Lincoln, the Philadelphia-based insurer that struck deals to sell its asset manager and U.K. unit, reported its first profit in a year last week. Genworth, the Richmond, Virginia- based insurer, posted its first profit in six quarters as investment losses shrank.
To contact the reporter on this story: Hugh Son in New York at hson1@bloomberg.net
The Perfect Storm Continues...
Coach T
I just got off the phone with Ms. Dice at A&M.
Regarding the $50B asset figure that is referred to in the NY Post article earlier in the week...she confirmed that the only numbers the company will stand by are the numbers released thru the MOR's such as the most recent balance sheet dated 12/31/08.
She did not know how the reported arrived at the $50B figure and did not care. She said oftentimes reporters take numbers out of context.
The 12/31/08 balance sheet says ASSETS $295B and LIABILITIES $325B! The new A/L numbers are being worked on as we speak and will be released between now and the end of the year.
Do your own due diligence!
Enjoy the Ride!
Coach T
how to keep the faith with claims more than 500 billions
When you get a chance read the court transcripts from October 23, 2009 at www.lehmancreditors.com under "Significant Events".
Particular emphasis on Judge Peck's decision and reasoning over the final 10-15 pages. It really provides introspect to Judge Peck's thought process. He also makes comment on the potential appeal that Metavante threatened the Court with and subsequently filed (Hint: He does not see the appellate court making any other decision either).
It is worth the read...IMO.
Coach T
the stocks went down because if A>L
with the claims
L again > A
don't you think coach ?
Now the Examiner Anton Valukas wants to investigate the SEC!
http://amlawdaily.typepad.com/amlawdaily/2009/10/lehman-examiner-wants.html
October 23, 2009 2:18 PM
Lehman Examiner Wants To Interview Ex-SEC Chief
Posted by Zach Lowe
The examiner investigating the collapse of Lehman Brothers has requested an informal interview with Christopher Cox, the former head of the Securities and Exchange Commission who left the agency and joined Bingham McCutchen as a partner in July.
The SEC has not yet made Cox available for an interview with the examiner, Jenner & Block's Anton Valukas, according to an update Bingham filed in Lehman's Chapter 11 case on Thursday.
Bingham has made several filings announcing their representation of Lehman on tax issues since the firm's acquisition in July of McKee Nelson, which had been serving as Lehman's special tax counsel throughout the bankruptcy. The main McKee lawyers involved in the Lehman matter moved to Bingham and still are handling the case.
The SEC "is determining whether other current or former agency personnel should respond to this request for information in lieu of [Cox]," the filing states.
Valukas, a former federal prosecutor, has subpoena power in his investigation of the events leading up to the firm's collapse, including several large cash transactions between Lehman entities in the days before the company filed for bankruptcy on Sept. 15 of last year. Valukas declined to comment. A Bingham spokeswoman did not immediately return a call seeking comment.
In its filing, Bingham says "the firm will have no role in connection with any potential interview [of Cox], and will implement an ethical wall to avoid even the appearance of impropriety."
Ironically, some of Bingham's clients took the most aggressive stances against Lehman in the early days of the company's bankruptcy filing last fall. One Bingham client, investment fund Harbinger Capital Partners, filed the most contentious motion--a request to open Lehman's books so creditors could investigate allegedly suspicious bank transfers made shortly before Lehman's bankruptcy filing.
And in mid-November 2008, two months after Lehman's Chapter 11 filing, Deutsche Bank (represented by Bingham) sued Lehman to reclaim $72.5 billion it accidentally transferred to Lehman more than a week after Lehman's bankruptcy filing.
The truth is all going to be coming out soon!
Keep the Faith!
Coach T
SWEET...EVEN THOUGH METAVANTE IS GOING TO APPEAL LEHMAN IS ON ITS WAY! THANKS JUDGE PECK!
Reuters
Metavante to appeal swap ruling in Lehman case
Fri Oct 23, 2009 2:24pm EDT
Email | Print | Share| Reprints | Single Page[-] Text [+] NEW YORK, Oct 23 (Reuters) - Metavante Technologies will appeal a decision by a New York court in a widely watched dispute with Lehman Brothers (LEHMQ.PK), in which the company lost a motion regarding payments it is required to make to the bankrupt company in a derivatives contract.
The provider of banking and payment technology on Friday lost a motion to amend or stay a decision made last month that found the company must continue to make payments on an interest rate swap, after it chose not to terminate the swap in the year following Lehman's failure.
Interest rate swaps are private agreements to swap fixed- and floating-rate payments based on interest rates.
An attorney for Metavante said before the ruling that he will appeal the decision if the judge ruled against the firm.
The case is being widely watched as it addresses safe harbors that contracts in the $450 trillion, privately traded derivatives markets have in bankruptcy. These include the right to cease making payments, to net and terminate contracts and to collect collateral backing the trades.
A lawyer for the official committee of unsecured creditors of Lehman expressed concerns on Friday that a victory by Metavante could encourage other counterparties to derivatives contracts to cease making payments to the firm.
This would impede efforts to recover assets to repay Lehman's creditors, as the derivatives portfolio is considered one of the bank's largest assets, he argued.
Derivatives are contracts that take their value from an underlying asset, such as debt, equity or commodities, or are tied to changes in interest rates.
PLAYING THE MARKET
Judge James Peck of the U.S. Bankruptcy Court for the Southern District of New York ordered last month that Metavante continue making payments on the swap, because it had failed to exercise its option to terminate the trade for a year after Lehman failed.
Peck reiterated the comments in his decision on Friday, adding that "Metavante self-consciously chose to play the market."
Lawyers for Metavante have argued that as the non-defaulting party they had the option to wait until the value of the contracts was more favorable to them to terminate the trade.
The company on Friday sought to amend the September decision so that payments it was ordered to make to Lehman on the swap be held in an escrow account. This would ensure funds are available for retrieval if the value of the contract swings so that Lehman owes payments to Metavante, they said.
Judge Peck denied the request, arguing that Lehman is highly liquid, and "sitting on a huge pile of cash" with assets of more than $15 billion. This would make it easier for Metavante to claim payments from Lehman in the event the contract moves in the company's favor, he said.
Metavante was acquired by electronic payment processor Fidelity National Information Services (FIS.N) earlier this month. (Reporting by Karen Brettell; Editing by Andrea Ricci)
http://www.reuters.com/article/bankruptcyNews/idUSN2311601120091023
Coach T
Quote for the S & P Leveraged Loan Index
SPBDLLB:IND S&P Fixed Income Index LS
Add Security to your Watch List
http://www.bloomberg.com/apps/quote?ticker=SPBDLLB%3AIND
Enjoy the Ride...a little bumpy in here.
Coach T
Brikk asked me to give some updated estimates on what I was thinking for the Assets and Liabilities.
Realize that these are just my thoughts and that each investor needs to do his/her own research and decisions.
As of the 12/31/08 Balance Sheet you have the following:
Assets = Approx. $295B
Liablites = Approx. $325B
We know that the marketplace bottomed in March of 2009. From that point we also know certain facts. Mainly that the S&P Leveraged Loan Index and High Yield Corporate Bonds are up 30-50% from the March lows.
If we use a 15% increase to the Asset portfolio (which is very conservatively marked according to Mr. Marsal) you get a new asset number of $347B.
We also know that in order for Trusts/Preferreds to get 100% of Face Value ($25 or $50)that it would take approx. $11B. Add that to the Liabilities of $325 and you get a number like $336B to cover the Trusts/Preferreds Face Value in total.
This does not take into account the claims, derivatives, legal actions etc.
We should see a new balance sheet coming in November according to the court dockets from the period extending the reorg timeframe.
Just my opinion...please make your own decisions.
Coach T
Lehman's Mortgage Business Is Back From The Dead(Look at the last paragraph)
http://www.businessinsider.com/lehman-is-back-from-the-dead-and-back-to-mortgage-lending-2009-10
Vincent Fernando|Oct. 21, 2009, 3:23 PM | 393 |5
PrintTags: Lehman Brothers, Financial Services, Housing
Lehman's old mortgage lending business is back, and expanding its underwriting of mortgages once again.
Aurora Loan Services, now owned by Aurora Bank FSB, is hiring and will grow its lending despite its troubled past.
Bloomberg: Aurora, which ranked as the top Wall Street-owned lender with $98 billion of originations in 2004 and 2005, announced plans to end most lending in January 2008. During the bankruptcy, Lehman has been lending to Aurora Bank, as well as contributing assets to the unit and buying its loans, to avert a regulatory seizure and protect its stake.
...
Aurora ranked as the 14th-largest servicer as of June 30, handling billing and collections on about $93 billion of loans, according to industry newsletter Inside Mortgage Finance. Aurora has been granting new mortgages to its servicing customers, one of the people said.
This could actually be a good move. The company will be focusing on government-backed mortgages that are less risky than its past work, and due to a lack of sufficient competition in the space, could make a lot of money doing so.
“For the ones that are left, there’s opportunity,” Steve Jacobson, chief executive officer of Madison, Wisconsin-based Fairway Independent Mortgage Corp., said in an interview. His originations soared 67 percent from a year earlier to $2.6 billion in the first nine months of 2009.
This is another example of how Lehman wasn't "lost". The people are still around, as is much of the infrastucture. Many complete business units remain intact, even if they aren't under the same umbrella anymore. If they can be profitable, then they'll be back in some form or another.
Coach T
How is this not criminal? When we are all done sorting this mess, IMO Paulson will find himself next to Madoff and just maybe Jamie Dimon. Lets just hope the judicial system is not bought out yet!!
BIG THANKS COACH T,,,,your the best with the info,,,GLTA
Damn Coach! I sure hope that LEH rewards you (and us) for all your effort (GRIN).
Hank Paulson ordered LEHMAN to open its books to Goldman Sachs, UNBELIEVABLE!
Here comes the next lawsuit...you won't believe it.
http://blogs.reuters.com/felix-salmon/2009/10/21/how-paulson-gave-goldman-the-lehman-heads-up/
How Paulson gave Goldman the Lehman heads-up
Post a comment (4)Posted by: Felix Salmon
Tags: banking, banking, technocrats
The secret Paulson-Goldman meeting wasn’t the only time that Hank Paulson treated his buddies at Goldman Sachs especially well while at Treasury. In fact, it wasn’t the only time he did so before he got the now-famous waiver.
A bit further on in the Sorkin book, while Paulson is trying to work out what should be done with an imploding Lehman Brothers, we find this:
If all that weren’t enough to deal with, [Lehman president Bart] McDade had just had a baffling conversation with [CEO Dick] Fuld, who informed him that Paulson had called him directly to suggest that the firm open up its books to Goldman Sachs. The way Fuld described it, Goldman was effectively advising Treasury. Paulson was also demanding a thorough review of Lehman’s confidential numbers, courtesy of Goldman Sachs.
McDade, though never much of a Goldman conspiracy theorist, found Fuld’s report discomfiting, but moments later was on the phone with Harvey Schwartz, Goldman’s head of capital markets. “I’m following up at Hank’s request,” he began.
After another perplexing conversation, McDade walked down the hall and told Alex Kirk to immediately call Schwartz at Goldman, instructing him to set up a meeting and getting them to sign a confidentiality agreement.
“This is coming directly from Paulson,” he explained.
In many ways, this is worse than Paulson’s meeting with Goldman’s board: in this case, Paulson is forcing Lehman to open its books fully to a direct competitor, for no obvious reason. And in this case it’s not at all obvious that Paulson got a sign off from Treasury’s general counsel before doing so.
I suspect this is what happens when you do all your business by phone rather than by email: you’re so comfortable with the fact that you’re not leaving any kind of paper trail, it becomes much easier to cross the line and abuse your position as the most powerful Treasury secretary in living memory to the benefit of your former firm. If the Moscow meeting wasn’t enough to precipitate some kind of Congressional investigation of Paulson, this should be.
More to the story follow the link above...
Coach T
There are two positives that will increase the value about being able to get active in the mortgage market again.
1) The Office of Thrift Supervision and the Feds must have let Lehman start selling CD's again to attract capital. That is why Aurora Bank has gotten all of the funds from LBHI.
2) You cannot be in the Government mortgage market without having the company and its underwriters qualify under the FHA/VA requirements. Aurora Bank must have qualified... because if you can't get this qualification the Government will not issue its Mortgage Insurance Premium that guarantees the FHA/VA loans.
Also, according to the court dockets and July creditors meeting A&M is still using the most conservative mark to market models for pricing its portfolio. That means if anyone else were to look at the value it could be marked up to where everyone else has been setting prices.
Tomorrow is the last day to file a derivatives claim! We are slowing making headway.
Keep the Faith!
Coach T
Thanks coach.. As usual, an excellent find and astute observation and analysis. A perfect storm is brewing and all the dirty deeds done during the panic sessions of "depression" are now being examined and eventually, justice will prevail (hopefully).
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SECURITY DESCRIPTION: Lehman Brothers Holdings, Inc., Depositary Shares, each representing 1/100 of a share of 5.67% Cumulative Preferred Stock, Series D, stated value $50.00 per depositary share, redeemable at the issuer's option on or after 8/31/2008 at $50 per depositary share plus accrued and unpaid dividends, with no stated maturity, and with distributions of 5.67% per annum paid quarterly on 2/28, 5/31, 8/31 & 11/30 to holders of record on the 15th day of the month in which that payment is made. In regards to payment of dividends and upon liquidation, the preferred shares rank equally with other preferreds and senior to the common shares of the company. See the IPO prospectus for further information on the preferred stock by clicking on the ‘Link to IPO Prospectus’ provided below. |
Stock Exchange | Cpn Rate Ann Amt | LiqPref CallPrice | Call Date Matur Date | Moodys/S&P Dated | Distribution Dates | 15% Tax Rate |
---|---|---|---|---|---|---|
OTOTC Chart | 5.67% $2.835 | $50.00 $50.00 | 8/31/2008 None | WR / NR 1/25/09 | Suspended! 2/28, 5/31, 8/31 & 11/30 Click for Ex-Div Date | Yes |
NOTE: LBHGP last traded APRIL 9 2008 and has not traded since (As per Scottrade back room) (thanks to waman for info)
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