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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
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
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
Hartford Insurance Group (HIG) closed at $25.80.
Company said in its disclosures that book value is now $37.90!
Book value was $32.20...according to Yahoo. More of the same...lets get that new balance sheet out!
Coach T
FNM and FRE moved late in the day also.
My guess is they will benefit from the same improvement AIG is seeing in their bonds portfolios.
Coach T
Anyone notice AIG today???
Coach T
Exactly...no government involvement just might turn out to be the best thing that never happened!
Coach T
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
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
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
Personally, I am most comfortable with a 15% increase on the $295B assets value from the 12/31/08 balance sheet that was posted in August, 2009.
That puts the value of the assets at $347B and covers the face of the Trusts/Preferreds including the $325B liability number from 12/31/08 balance sheet.
The article quotes the analyst using a 73% increase in the AIG book value. That would truly be astounding. I do not think we will see any movement that large...but one never knows.
Do not under estimate the power of the Fed trying to reflate all of the assets that were causing the demise last year.
As always...do your own due diligence and make your own decisions. It certainly seems like the stars are in alignment.
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
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
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
Today is the last day to file a claim for the "Lehman Program Securities".
No more claims can be filed after today. I think there is a request for hearing pending on one security that the CUSIP or ID number could not be located.
Other than items like that we should start making progress on knowing what the amount of claims will be.
Balance Sheet sheet be out before the end of year.
Existing housing numbers continue to remove supply. IMO that is more important than the New Homes Sold.
Keep the Faith.
Coach T
Also in court transcripts one of the A&M legal team expressed his thinking that when JPM first thought Chap 11 filing was a possibility they just started closing LEHMAN accounts. This was an easy task because JPM was a clearing bank for most of LBHI & LBI operations.
Easier to get forgiveness than permission kind of thing.
Coach T
Brikk, everyone...
If I am not mistaken the JPM hearings are coming in November. According to Mr. Marsal, JPM was/is holding up to $17B of LEHMAN money.
Ever since the Chap. 11 filing by the Lehman Debtors, many (including Mr. Marsal in the original presentation to creditors back in January...see transcripts) believe the liquidity lost in that last week amounting to $17B +/- and held by JPM was the TILT.
I believe it is a big reason that Mr. Marsal requested the court appoint an Examiner that is an individual that is "fiercely independent and willing to take on anyone including the Federal Reserve"!
Stay tuned...
Coach T
What does the "Pitchfork" portend prices getting to?
Is there a standard barometer for upside target like an inverse H&S with distance between H and neckline?
Great chart...thanks Brikk.
Looks like the weak hands have been relieved of their concerns over price drops.
Coach T
Relax Aik:
That trade is posted out of sequence.
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
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
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
We have been pulling back ever since CIT said it was having trouble a few weeks ago...
Looks like they have pulled together financing of $4.5B to stay out of BK.
This and AIG are the lead Zombies...followed by FNM, FRE, and WAMUQ.
Just a heads up. Not many sellers left on the J's below $.10 IMO. Sales of 300, 400, etc.
Pullback almost complete?
Coach T
Agreed Brikk:
Also, we are seeing positive divergences in CCI, Fast Sto, Slow Sto, MFI, and WM%R.
Looks like some weak hands got shook, flushed and excused from the field.
IMO.
Coach T
FYI...according to the LBHI dockets page the LEHMAN/BARCLAYS Adversary Calendar has been agreed upon.
So the game is on!
It won't be a quick decision as the discovery and posturing will basically take place over the next two months with February/March 2009 the start of the contest.
FYI...I know some of you were looking for a ruling last week. Once again, read the most recent court transcripts to gain a lot of insight to how Judge Peck runs his court room. IMO.
Coach T
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
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
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
It really does not matter the money will be returned. Lehman certainly will not get a windfall like that.
The SIPA LBI Trustee sends back "post-petition" money that came in to the accounts almost daily.
I find it interesting that the REIT's are one of two sectors that are green today. Lehman needs the REIT's to continue to improve over time...IMO. Software is the other sector.
Keep the Faith...
Coach T
If I am not mistaken the J's are Lehman Brothers Finance, SA.
However, they are all resting on the strength of the holding co. LBHI...IMO.
Coach T
Looking at the weekly charts...this is the pullback that takes the Lehman Preferreds into the $.50-$.75 range after November's Asset and Liability update.
Has not been announced yet, but it was part of the deal with the Creditors Committee to extend the reorg date to May 2010. In order to go that far out the Committee wanted a November update.
Will advise if I see a meeting date.
Keep the Faith...Low volume pullback the last 5 weeks. This is where the "big boys" busted thru the $.10 area on heavy volume. They should show up here in the next couple of weeks if this move is for real.
Any thoughts??? Brikk?
Coach T
Found this article posted on the LEHPQ board...
Finance Expert:
Why 'Zombie' Stocks Don't Spook Some Traders
Fri Oct 23, 2009 5:20pm EDT
Email | Print | Share| Reprints | Single Page[-] Text [+] Featured Broker sponsored link
WINSTON-SALEM, N.C., Oct. 23 /PRNewswire-USNewswire/ -- Two weeks before
Halloween, the Securities and Exchange Commission again warned investors
against buying shares of bankrupt companies, but like those creatures in
horror films that rise from the dead, so-called "zombie" stocks--shares of
companies that failed during the financial crisis--are still on the march.
Take, for example, Washington Mutual and Lehman Brothers. At the end of last
year, their stocks traded at 2 cents and 3 cents per share, respectively. With
no future earnings in sight, shares of Washington Mutual recently traded
around 20 cents, and Lehman Brothers shares have hovered around 15
cents--spectacular gains fueled by what many consider nothing more than
gambling.
Critics have called on the SEC to halt the trading of such stocks to protect
unsophisticated investors who might be lured into unwise trades. But Lecturer
of Finance Sherry Jarrell, who teaches a graduate-level class on investments
and portfolio management in the Wake Forest University Schools of Business,
disagrees.
While Jarrell doesn't think investing in zombie stocks is a sure-fire
profitable strategy, she doesn't consider it gambling either, because there is
an expectation of gain. Jarrell also doesn't believe those who are trading
zombie stocks are ignorant or unsophisticated. "To outlaw these stocks means
that you've truncated an avenue for people to express their different risk
preferences," Jarrell says. "If someone wants to go on that haunted trail, let
them. It's not like they're taking advantage of people on the other side of
the trade."
Washington Mutual and Lehman Brothers lost their standing to be listed on
stock exchanges, so traders have to keep up with prices through a quotation
service known as the Over the Counter Bulletin Board, which unsophisticated
investors are unlikely to access. Other troubled companies, such as Fannie
Mae, Freddie Mac and AIG, whose shares are widely considered to be zombie
stocks, are still listed on major exchanges. The federal government's own
backing of those companies weakens any argument against allowing individuals
to invest in them, if they dare.
One project Jarrell assigns her students is to identify a publicly traded
stock they believe the market has significantly mispriced. By definition, she
says, the exercise requires the same calculation made by traders of zombie
stocks--reaching a different conclusion about a stock's future cash flows and
risks than that of the market.
Jarrell points out that all investments carry a degree of risk proportional to
potential returns, and investors have varying tolerances for risk. Some hide
from risk; others seek it out. She recalls a study some years ago that found
striking similarities in the blood chemistry of day traders on Wall Street and
jet fighter pilots. "It turns out they need a certain amount of danger to feel
normal," Jarrell says. "They seek risk in order to feel comfortable."
Jarrell blogs about finance and economic issues at www.sherryjarrell.com.
This news release was issued on behalf of Newswise(TM). For more information,
visit http://www.newswise.com.
SOURCE Wake Forest University
Eric F. Frazier of Wake Forest University, +1-336-758-5238, frazieef@wfu.edu
© Thomson Reuters 2009 All rights reserved
COACH T
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
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
Now the Examiner Anton Valukas wnats 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
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
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
I wrote this in response to a question on the Yahoo board...thought you might like to read it. As always your thoughts are welcome...
A great majority of the derivatives/swaps contracts have been "terminated" by Lehman counterparties. The challenge/opportunity for Lehman is very few of the "terminations" have been verified, priced, and ageed upon per the MSDA agreements.
The Metavante court decision has the potential to set a tremendous precedent. It was decided and is once again back in court today!
Metavante thought that just because Lehman went into Chap 11 that was grounds for default, automatic termination and that Metavante did not owe millions of dollars to Lehman. So they ignored doing anything.
Metavante found out that counterparties still have to follow certain procedures in order to "terminate" a position. Just filing a Chap 11 BK does not necessarily mean counterparties can walk away or confiscate collateral at whatever price the counterparty feels appropriate. There is still alot more meat on the bone here. Know one knows how it will turn out.
However, it leaves the door open for Lehman to go back and negotiate settlements that counterparties previously thought were terminated unilaterally upon filing BK!
Coach T