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At the REITS are not down MORE than the market, like they have been recently...
I like how the REITS are holding up in a down market today.
If you compare the charts on between the "zombies" and the REITS they topped out and started correcting within a couple of days of each other.
No doubt surf...but that will be where some of the claims are coming from.
The reference also talks about there being funds from LBHI and affiliates.
Coach T
I agree...also, not only are there customer assets possibly being held at the DTCC, but LBHI, LBIE, LBI, and many of the other LEHMAN entities.
Obviously, there is more to the story either good or bad, but it would make sense that the DTCC would be a good place to start sniffing a paper trail that leads to assets.
I am sure there is more to come...keep the faith.
Coach T
I had a chance to reread the footnote about the DTCC investigation by the LBI SIPA Trustee. I thought you might enjoy looking at it highlighted again...
DTCC indicated in its 2008 Annual Report that, as of the Filing Date, more than $500 billion in property, largely held for the benefit of customers and other LBI counterparties, was reflected in the LBI accounts held through the Clearing Agency Subsidiaries.
DTCC, through the Depository Trust Company, National Securities Clearing Corporation, and Fixed
Income Clearing Corporation (the “Clearing Agency Subsidiaries”), provides clearance and settlement
services for broker-to-broker transactions in equities, corporate and municipal bonds, government and
mortgage-backed securities, money market instruments and over-the-counter derivatives. LBI relied
extensively on DTCC’s services to complete, in the ordinary course of its business, the clearance and
settlement of transactions effected by LBI prior to the Filing Date, and processed through accounts at
the Clearing Agency Subsidiaries. DTCC indicated in its 2008 Annual Report that, as of the Filing
Date, more than $500 billion in property, largely held for the benefit of customers and other LBI
counterparties, was reflected in the LBI accounts held through the Clearing Agency Subsidiaries.
As noted above, during the week of September 22, 2008, DTCC purported to invoke rules governing
ceasing to act and/or wind-down of LBI’s pending and failed transactions. This was a complex
process potentially involving tens of thousands of transactions, and was further complicated by the
transfer of some but not all of LBI’s accounts to Barclays pursuant to the Purchase Agreement.
Any Thoughts???
Coach T
Not sure yet...I have not read everything just wanted to post what I have been looking for since last week.
Coach T
Statement of the Office of the Trustee of Lehman Brothers Inc. (LBI)
Second Interim Report on Progress of LBI's SIPA Liquidation
http://ca.sys-con.com/node/1183030
NEW YORK, Nov. 11 /PRNewswire/ -- James W. Giddens, the Trustee for the Liquidation of Lehman Brothers Inc. (LBI), with assistance of his counsel at Hughes Hubbard & Reed LLP, today filed his Second Interim Report for the period May 30 to November 11, 2009 with the United States Bankruptcy Court for the Southern District of New York. The Trustee has now administered more than $110 billion in the Securities Investor Protection Act (SIPA) liquidation of the largest broker-dealer ever to fail and one of the largest and most complex insolvency proceedings in history. The Report is available on the Trustee's website (www.lehmantrustee.com).
The Trustee's principal duty is to return securities and cash to customers and maximize assets for distribution from the estate. Following his court appointment on September 19, 2008, the Trustee successfully transferred more than 110,000 accounts aggregating in excess of $92 billion to other
broker-dealers -- thereby preserving liquidity and market access to the greatest extent possible following Lehman's demise. During the Report Period, the Trustee took steps to complete transfers and resolve open positions as described in the Report.
As of the June 1, 2009 deadline for filing claims, the Trustee received more than 12,500 asserted customer claims on behalf of more than 86,000 accounts, along with more than 7,500 general estate claims. The Trustee has already determined more than 85% of asserted public customer claims, and has made substantial progress in the reconciliation of customer claims asserted by, among others, Lehman Brothers Holdings Inc. and Lehman Brothers International (Europe), with the latter alone involving reconciliation of in excess of 200,000 failed securities transactions.
To help satisfy such claims, the Trustee has filed an allocation motion with the Court to determine how much of the roughly $18 billion currently available to the estate (along with any future recoveries) will be available in the fund of "customer property" -- a priority pool of assets available only to satisfy allowed customer claims.
The Trustee continues to actively marshal assets and is now pursuing unwinds and customer receivable positions, which so far have resulted in a return of more than $700 million.
SOURCE James W. Giddens, the Trustee for the Liquidation of Lehman Brothers Inc.
Coach T
BARCLAYS CAPITAL INC.
115. In addition to the assets Barclays has already received under the Purchase
Agreement, Barclays has made formal demands (and filed corresponding claims in the
claims process) for an additional $2 billion to 3 billion or more of assets based on its
interpretation of the Purchase Agreement and Clarification Letter. These demands
involve claims to items in LBI’s former Rule 15c3-3 customer reserve account and
margin and other property at exchanges or clearing agencies that may be needed to satisfy
customer claims. The demands also include property in clearance boxes at DTCC that
may also be needed to satisfy customer claims and which Barclays, the Trustee, and
DTCC had specifically agreed in a letter agreement were excluded assets under the
purchase transaction. The Trustee believes that the transfer of these additional assets, as
well as an amount in excess of $3 billion of similar assets that are already in the
possession of Barclays, were not approved by the Bankruptcy Court on the Filing Date,
and that the transfer of these assets to Barclays would create an unfair windfall for
Barclays at the expense of public customers.
116. On June 25, 2009, the Bankruptcy Court entered an Order granting
LBHI’s motion under Federal Rule of Bankruptcy Procedure (“FRBP”) 2004 for
permission to seek written discovery and depositions from Barclays into the assets
Barclays received and liabilities assumed under the Purchase Agreement (“the June 25
Order”). The June 25 Order specifically permitted the Trustee to participate in the Rule
2004 discovery, and ordered the Trustee to work with LBHI, the Examiner in LBHI’s
Chapter 11 case, and the Creditors’ Committee to develop a protocol to govern the
discovery sought from Barclays, and to confer with Barclays regarding the discovery
requests. Due to the extraordinarily cooperative efforts of the Trustee and counsel for the
other parties, the parties succeeded in coordinating and completing an extremely
demanding discovery schedule that included the depositions of more than 30 current and
former Barclays and Lehman employees in a period of just over six weeks.
117. Based in part on information learned during the Rule 2004 discovery, on
September 15, 2009, the Trustee filed a motion for relief pursuant to the Sale Orders or,
alternatively, for certain limited relief under Federal Rule of Civil Procedure (“FRCP”)
60(b). If the Trustee were not granted the relief sought in its motion, the Trustee could be
denied recovery of about $3 billion or more in cash and other assets transferred to
Barclays and might have to pay or release to Barclays $3 billion dollars or more of
additional cash and securities, all of which could have a major impact on satisfaction of
claims in this proceeding. LBHI and the Creditors’ Committee also filed motions seeking
relief under Rule 60(b).
118. The Trustee has conferred with the other parties to agree upon an efficient
and realistic procedure and timetable to resolve this important dispute. To that end, the
parties appeared before Judge Peck on October 15, 2009, and have agreed to a schedule
under which further discovery and briefing will be completed by March 18, 2010. The
Court has scheduled oral argument on the Trustee’s and the other motions for March 25,
2010, and, if needed, an evidentiary hearing is scheduled to begin on April 26, 2010.
Coach T
DTCC Investigation
105. The Trustee continues to review the factual details and legal basis for
DTCC’s activities during the week of September 22, 2008, when DTCC purported to
invoke rules governing ceasing to act and/or wind-down with respect to LBI’s pending
and failed transactions, and his professionals are conducting a review of the liquidation of
collateral by DTCC during the ensuing period.11 Issues have also arisen regarding fees
and expenses charged by DTCC in connection with these activities.
106. LBI had direct relationships with three of the DTCC subsidiaries –
Depository Trust Company (DTC), National Securities Clearing Corporation (NSCC),
and Fixed Income Clearing Corporation (FICC) – covering custodial, collection and
clearance and settlement services with respect to a broad range of securities. The
Trustee’s professionals have requested and obtained large volumes of information with
respect to each of these subsidiaries, including the property they held on the Filing Date
or received thereafter and the disposition of such property, whether to Barclays and other
brokers receiving account transfers, to the Trustee as return of deposits or turnover of
post-petition distributions, to a DTCC subsidiary as a cost or fee associated with the
wind-down, or through liquidation to satisfy or close out open commitments of LBI.
107. As with JPMC, the Trustee seeks a full accounting of DTCC’s activities in
regard to the liquidation of LBI collateral. Understanding and reconciling this large body
of data is an ongoing process between the Trustee’s professionals and DTCC personnel,
with regular exchange of information. With respect to Government and Mortgage-
Backed securities, final reconciliation also requires information from JPMC, as
11. DTCC, through the Depository Trust Company, National Securities Clearing Corporation, and Fixed
Income Clearing Corporation (the “Clearing Agency Subsidiaries”), provides clearance and settlement
services for broker-to-broker transactions in equities, corporate and municipal bonds, government and
mortgage-backed securities, money market instruments and over-the-counter derivatives. LBI relied
extensively on DTCC’s services to complete, in the ordinary course of its business, the clearance and
settlement of transactions effected by LBI prior to the Filing Date, and processed through accounts at
the Clearing Agency Subsidiaries. DTCC indicated in its 2008 Annual Report that, as of the Filing
Date, more than $500 billion in property, largely held for the benefit of customers and other LBI
counterparties, was reflected in the LBI accounts held through the Clearing Agency Subsidiaries.
As noted above, during the week of September 22, 2008, DTCC purported to invoke rules governing
ceasing to act and/or wind-down of LBI’s pending and failed transactions. This was a complex
process potentially involving tens of thousands of transactions, and was further complicated by the
transfer of some but not all of LBI’s accounts to Barclays pursuant to the Purchase Agreement.
Settlements would occur through receipt of funds or delivery of securities at JPMC rather
than FICC, the DTCC subsidiary providing services with respect to these types of
securities.
Coach T
JPMorgan Chase Investigation
101. Insofar as JPMC was LBI’s primary clearing bank, it has been and
remains one of the focuses of the Trustee’s investigation, and its actions have also been at
issue in connection with various claims made against LBI. In that regard, the Trustee,
with the assistance of his professionals, has been and is investigating the seizure and
liquidation of collateral by JPMC, and has otherwise been endeavoring to investigate the
pre- and post-petition actions of JPMC to the extent they impact LBI.
102. This has included, among other things, investigation of JPMC’s seizure of:
(i) cash and securities contained in certain Fixed Income Division Prime Brokerage
Accounts; (ii) certain municipal bonds purchased by Lehman Brothers Commercial Bank
on September 12, 2008; and (iii) other property which may constitute fully paid for
customer securities. JPMC has been responding on a rolling basis to requests for
documents, and has also been working with Deloitte in attempting to reconcile numerous
transactions. The Trustee is also seeking information regarding the actions of JPMC
from additional parties including former employees of LBI and DTCC.
103. The Trustee’s counsel, with the assistance of the Trustee’s professionals,
has reviewed in excess of 400,000 pages of documents, and over 4,000 spreadsheets and
other files produced by JPMC, regarding JPMC’s relationship with LBI and its role as
LBI’s clearing bank. The Trustee’s counsel continues to work with JPMC to obtain
additional pertinent documentation, including an accounting of the transactions between
JPMC and LBI before and after the Filing Date and a full accounting of JPMC’s seizure
and liquidation of collateral. The Trustee has also reviewed LBI documents related to
JPMC and has sought documents or other information regarding JPMC from DTCC and
Barclays, among others.
104. The Trustee’s counsel has to date conducted nine interviews of former
JPMC employees concerning (i) the business relationship between LBI and JPMC, (ii) the events leading up to the Filing Date, (iii) the winding down of LBI’s transactions, and
(iv) the liquidation of LBI securities held by JPMC. The Trustee’s professionals have
also communicated with JPMC with respect to these matters on numerous other
occasions. The Trustee’s counsel has sought information from former Lehman
employees regarding matters related to JPMC and to date has conducted two depositions.
The Trustee’s counsel has coordinated its investigation with related investigations by the
Creditors’ Committee.
Coach T
LBI Trustee's November 5, 2009 update has been filed on the LBI SIPA website.
I am going to post some excerpts...subsequently...
Coach T
Agree 100%...the trades are getting smaller while the weekly charts are coiling for the next move up...
Does not look like there are many sellers left. Just 500-1000 share trades.
Let start to see some numbers and decisions being made by the courts.
Coach T
Did you know LEHMAN owns 23% of a utility company? But there are no more assets...Barclays got them all...NOT! Agreeing to not sell its interest for two years...doesn't sound like a fire sale to me...
Lehman-Backed Indian Power Producer to Raise Funds (Update2)
http://www.bloomberg.com/apps/news?pid=20601091&sid=anC5S7OyHZC8
By Pooja Thakur
Nov. 11 (Bloomberg) -- KSK Energy Ventures Ltd., the Indian utility whose stakeholders include funds tied to Lehman Brothers Holdings Inc., plans to raise as much as $125 million selling shares to institutional investors.
KSK will sell as many as 30 million shares between 194.5 rupees and 196 rupees apiece, a sale document showed. The Hyderabad-based company also reached an agreement with the Lehman affiliate that holds 23.2 percent of its equity not to sell a 13.2 percent stake for two years, it said in a statement to the National Stock Exchange yesterday.
The utility joins state-owned NHPC Ltd. and billionaire Gautam Adani’s power producer in tapping appetite for energy stocks as companies set up plants in a nation that may suffer a peak-hour power shortage of 13 percent this year. India’s benchmark equity index is headed for its best year since 2003 as an estimated 6.5 percent economic growth lures foreign investors.
KSK, which reported a 40 percent increase in profit for the year ended March 31, raised 8.3 billion rupees ($194 million) in an initial share sale in July last year. The company plans to use the money from the latest sale for new projects, repayment of loans and working capital, it said in the pre-sale document.
Shares of KSK rose 0.9 percent to 200.65 rupees as of 11:55 a.m. local time in Mumbai trading. They have advanced 4.3 percent this year, compared with the Sensitive Index’s 72 percent rally.
Non-Binding Agreement
LB India Holdings, the affiliate of Lehman, is its largest institutional investor with a 23.2 percent stake as of Oct. 30. The non-statutory agreement stipulated that LB India won’t sell, pledge or transfer the 13.2 percent stake until Oct. 29, 2011, according to the pre-sale document.
Still, there’s “no assurance” that LB India won’t sell its holdings, KSK said in the filing. A perception that such sales may occur may also “adversely impact the price,” KSK said in the sale document.
The LB India funds last month sold a 5.23 percent stake in KSK at 200 rupees each, filings to the Mumbai exchanges showed.
India Infoline Ltd. and Axis Bank Ltd. are managing the latest share sale.
To contact the reporter on this story: Pooja Thakur in Mumbai at pthakur@bloomberg.net
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
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
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
That is what I am thinking at this time based upon my discussion...
I spoke with Milbank and Tweed today. I was looking for a transcript that would reveal what the SIPA LBI Trustee had said in a status conference to the Court last Thursday...
They were still researching whether or not there was audio or transcript format...
Separately, I asked if a time had been scheduled to provide a creditors update per the agreement with A&M when the extension for the REORG time period was granted...
THE ANSWER WAS IT HAS BEEN SCHEDULED AS A PART OF THE OMNIBUS HEARING ON THE 18TH of NOVEMBER...
We shall see...we are now in the 8th week of consolidating the gains from earlier in the year...not many sellers left...IMO...when volume comes I concur with Brikk...$0.50 is not far off.
Keep the Faith IMO.
AIG May Be Able to Pay Back Fed Loan, Moody’s Says (Update2)
http://www.bloomberg.com/apps/news?pid=20601087&sid=aA8cWHYOf1GQ&pos=4
By Hugh Son
Nov. 9 (Bloomberg) -- American International Group Inc., the insurer bailed out by the U.S., will be able to repay its Federal Reserve credit line and “much or all” of the Treasury Department’s investment if financial markets stabilize, Moody’s Investors Service said today.
The U.S. is “committed to working with the firm to maintain its ability to meet obligations as they come due throughout the restructuring process,” Moody’s said today in a statement, maintaining its credit ratings on the New York-based insurer. AIG owed more than $44 billion on the credit line as of last week and has tapped more than $40 billion from Treasury facilities.
AIG posted third-quarter net income of $455 million last week, the insurer’s second straight profitable period, on lower investment losses. Chief Executive Officer Robert Benmosche has halted sales of an investment-advisory unit and Japanese life insurers to build value in the assets.
“The slower approach to restructuring could help AIG to generate more favorable values from its business portfolio than would be the case under rushed asset sales,” Moody’s said.
A decline in the value of AIG’s assets could impair the company’s ability to repay obligations and lead to downgrades, Moody’s said.
AIG’s Borrowing
AIG tapped a Treasury facility for another $4.2 billion to help restructure its money-losing mortgage guarantor and the plane unit it’s trying to sell, the insurer said last week in a regulatory filing. The insurer accessed about $2.1 billion from its Treasury facility on Aug. 13 and said on Nov. 6 it would draw down another $2.1 billion. AIG got the $29.8 billion facility in April as part of its fourth bailout.
The company has placed its two biggest non-U.S. life insurance units, American International Assurance Co. and American Life Insurance Co., into special-purpose vehicles to pay down its Fed debts by $25 billion. The transactions, to be completed by yearend, will cause a pretax charge of $5 billion, AIG said.
The insurer’s $182.3 billion rescue includes a $60 billion Federal Reserve credit line, a Treasury Department investment of as much as $69.8 billion, and up to $52.5 billion to buy mortgage-linked assets owned or backed by the company.
To contact the reporter on this story: Hugh Son in New York at hson1@bloomberg.net
Here come the Zombies!
Coach T
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
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
I posted this message in response to some questions that Saudek had asked on the LEHDQ board. I think that it applies here too, and would welcome any feedback...
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
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
Just my opinion...
According to the 12/31/08 balance sheet there are $295B assets and $236B liabilities.
Oh and also...$39 TRILLION dollars in derivatives! The gentleman from KDB talks about "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."
A&M has been reproducing the business network. Think of all the data, information and contacts that are still involved with $39 Trillion dollars of derivatives. Not to mention the contacts and information thru the Assets and Liabilities.
If one assumes the A=L and if an entity that had a big enough balance sheet to take on the notional value of the derivatives contracts, they would be many years ahead by allowing KDB personnel access to the LEHMAN network.
The items sold to Barclays were basically the broker dealer and clearing ops from LBI (plus alot of assets not supposed be transferred) and 10,000 employees. (Plus the high end private wealth management customers.) Many of those employees were extremely loyal to LEHMAN.
The reason LEHMAN was never saved was because NO ONE knew what the value was and NO ONE knew what the risks were in the Trillions of dollars in derivatives contracts. With the entire global financial system in freefall no company, sovereign wealth or government wanted to take the gamble.
After 18 months A&M is getting on top of all of this. In another 5-6 months we will know what the value and risk levels are and how this turns out...IMO.
Coach T
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
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
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 do not think there is enough information to detail that. Suffice it to say that virtually everyone of the credit markets that suffered during the last two years and has been collapsing collateral values of all types are recovering nicely.
It has to impact the assets of the Lehman enties in a positive way. Maybe not as much as other companies but positively just the same.
Remember, according to the 12/31/08 balance sheet total liabilities including preferreds is a difference of only about $41B. (Assets $295B minus Liabilities $325B + $11B Preferred). $41B/$295B would be a 13.8% increase on assets.
Keep the Faith...
Coach T
Enjoy the Ride!
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
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
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
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
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
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
SIPA LBI Trustee to give Claims Status Conference today in BK Court at 2:00pm.
FYI
Coach T
Keep your eye on FNM after the close (earnings)...I think the market is looking for some pretty bad news there. It will be interesting to see how the markets respond.
Would not surprise me at all to see them print somewhere in the $.05 range. Ready and waiting...
Same thing happened before the last run up.
Coach T
When I first read the post by Texan on the G's...it sounded as if after 6 periods go by of non-dividend payment the Prefferds have the right to name two new directors on the board of directors.
Later it discusses the possibility of no Senior securities can be issued to the Preferreds.
Which means new stock cannot be issued without the Preffereds getting a piece of the pie.
Need to do more research. Thoughts?
Coach
By end of year...hopefully with the next MOR on the 15th of Nov.
Coach T