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Brikk:
Actually, I believe the report for year to date (end of third quarter, 2009) will show enough assets to cover liabilities and most if not all Trust/Preferred and then show some love to the Common.
However, if the new A/L that comes out is for end of 1st quarter it could look a little worse...because that is when every thing was at its worst.
IMO....
Coach T
Quote for the S & P Leveraged Loan Index
SPBDLLB:IND S&P Fixed Income Index LS
Add Security to your Watch List
http://www.bloomberg.com/apps/quote?ticker=SPBDLLB%3AIND
Enjoy the Ride...a little bumpy in here.
Coach T
Quote for the S & P Leveraged Loan Index
SPBDLLB:IND S&P Fixed Income Index LS
Add Security to your Watch List
http://www.bloomberg.com/apps/quote?ticker=SPBDLLB%3AIND
Enjoy the Ride...a little bumpy in here.
Coach T
Quote for the S & P Leveraged Loan Index
SPBDLLB:IND S&P Fixed Income Index LS
Add Security to your Watch List
http://www.bloomberg.com/apps/quote?ticker=SPBDLLB%3AIND
Enjoy the Ride...a little bumpy in here.
Coach T
Brikk asked me to give some updated estimates on what I was thinking for the Assets and Liabilities.
Realize that these are just my thoughts and that each investor needs to do his/her own research and decisions.
As of the 12/31/08 Balance Sheet you have the following:
Assets = Approx. $295B
Liablites = Approx. $325B
We know that the marketplace bottomed in March of 2009. From that point we also know certain facts. Mainly that the S&P Leveraged Loan Index and High Yield Corporate Bonds are up 30-50% from the March lows.
If we use a 15% increase to the Asset portfolio (which is very conservatively marked according to Mr. Marsal) you get a new asset number of $347B.
We also know that in order for Trusts/Preferreds to get 100% of Face Value ($25 or $50)that it would take approx. $11B. Add that to the Liabilities of $325 and you get a number like $336B to cover the Trusts/Preferreds Face Value in total.
This does not take into account the claims, derivatives, legal actions etc.
We should see a new balance sheet coming in November according to the court dockets from the period extending the reorg timeframe.
Just my opinion...please make your own decisions.
Coach T
Brikk asked me to give some updated estimates on what I was thinking for the Assets and Liabilities.
Realize that these are just my thoughts and that each investor needs to do his/her own research and decisions.
As of the 12/31/08 Balance Sheet you have the following:
Assets = Approx. $295B
Liablites = Approx. $325B
We know that the marketplace bottomed in March of 2009. From that point we also know certain facts. Mainly that the S&P Leveraged Loan Index and High Yield Corporate Bonds are up 30-50% from the March lows.
If we use a 15% increase to the Asset portfolio (which is very conservatively marked according to Mr. Marsal) you get a new asset number of $347B.
We also know that in order for Trusts/Preferreds to get 100% of Face Value ($25 or $50)that it would take approx. $11B. Add that to the Liabilities of $325 and you get a number like $336B to cover the Trusts/Preferreds Face Value in total.
This does not take into account the claims, derivatives, legal actions etc.
We should see a new balance sheet coming in November according to the court dockets from the period extending the reorg timeframe.
Just my opinion...please make your own decisions.
Coach T
Brikk asked me to give some updated estimates on what I was thinking for the Assets and Liabilites.
Realize that these are just my thoughts and that each investor needs to do his/her own research and decisions.
As of the 12/31/08 Balance Sheet you have the following:
Assets = Approx. $295B
Liablites = Approx. $325B
We know that the marketplace bottomed in March of 2009. From that point we also know certain facts. Mainly that the S&P Leveraged Loan Index and High Yield Corporate Bonds are up 30-50% from the March lows.
If we use a 15% increase to the Asset portfolio (which is very conservatively marked according to Mr. Marsal) you get a new asset number of $347B.
We also know that in order for Trusts/Preferreds to get 100% of Face Value ($25 or $50)that it would take approx. $11B. Add that to the Liabilities of $325 and you get a number like $336B to cover the Trusts/Preferreds Face Value in total.
This does not take into account the claims, derivatives, legal actions etc.
We should see a new balance sheet coming in November according to the court dockets from the period extending the reorg timeframe.
Just my opinion...please make your own decisions.
Coach T
The briefs have moved forward regardless...read the transcripts and you get a better feel for what Judge Peck is having to deal with and how the the parties involved are planning.
I think there is a meeting to happen on or around the 29th of October. It was not clear what was to transpire. I will keep updates coming.
The next item that will be happening is the creditors update that will happen in November. No day set yet. This was a condition of having the date extended to file a reorg plan. The creditors committee wanted an update prior to May 2010.
This is where I believe we will get the first 2009 A/L numbers. I think we will be close to A=L after this release. IMO...only.
Coach T
Lehman's Mortgage Business Is Back From The Dead(Look at the last paragraph)
http://www.businessinsider.com/lehman-is-back-from-the-dead-and-back-to-mortgage-lending-2009-10
Vincent Fernando|Oct. 21, 2009, 3:23 PM | 393 |5
PrintTags: Lehman Brothers, Financial Services, Housing
Lehman's old mortgage lending business is back, and expanding its underwriting of mortgages once again.
Aurora Loan Services, now owned by Aurora Bank FSB, is hiring and will grow its lending despite its troubled past.
Bloomberg: Aurora, which ranked as the top Wall Street-owned lender with $98 billion of originations in 2004 and 2005, announced plans to end most lending in January 2008. During the bankruptcy, Lehman has been lending to Aurora Bank, as well as contributing assets to the unit and buying its loans, to avert a regulatory seizure and protect its stake.
...
Aurora ranked as the 14th-largest servicer as of June 30, handling billing and collections on about $93 billion of loans, according to industry newsletter Inside Mortgage Finance. Aurora has been granting new mortgages to its servicing customers, one of the people said.
This could actually be a good move. The company will be focusing on government-backed mortgages that are less risky than its past work, and due to a lack of sufficient competition in the space, could make a lot of money doing so.
“For the ones that are left, there’s opportunity,” Steve Jacobson, chief executive officer of Madison, Wisconsin-based Fairway Independent Mortgage Corp., said in an interview. His originations soared 67 percent from a year earlier to $2.6 billion in the first nine months of 2009.
This is another example of how Lehman wasn't "lost". The people are still around, as is much of the infrastucture. Many complete business units remain intact, even if they aren't under the same umbrella anymore. If they can be profitable, then they'll be back in some form or another.
Coach T
Lehman's Mortgage Business Is Back From The Dead(Look at the last paragraph)
http://www.businessinsider.com/lehman-is-back-from-the-dead-and-back-to-mortgage-lending-2009-10
Vincent Fernando|Oct. 21, 2009, 3:23 PM | 393 |5
PrintTags: Lehman Brothers, Financial Services, Housing
Lehman's old mortgage lending business is back, and expanding its underwriting of mortgages once again.
Aurora Loan Services, now owned by Aurora Bank FSB, is hiring and will grow its lending despite its troubled past.
Bloomberg: Aurora, which ranked as the top Wall Street-owned lender with $98 billion of originations in 2004 and 2005, announced plans to end most lending in January 2008. During the bankruptcy, Lehman has been lending to Aurora Bank, as well as contributing assets to the unit and buying its loans, to avert a regulatory seizure and protect its stake.
...
Aurora ranked as the 14th-largest servicer as of June 30, handling billing and collections on about $93 billion of loans, according to industry newsletter Inside Mortgage Finance. Aurora has been granting new mortgages to its servicing customers, one of the people said.
This could actually be a good move. The company will be focusing on government-backed mortgages that are less risky than its past work, and due to a lack of sufficient competition in the space, could make a lot of money doing so.
“For the ones that are left, there’s opportunity,” Steve Jacobson, chief executive officer of Madison, Wisconsin-based Fairway Independent Mortgage Corp., said in an interview. His originations soared 67 percent from a year earlier to $2.6 billion in the first nine months of 2009.
This is another example of how Lehman wasn't "lost". The people are still around, as is much of the infrastucture. Many complete business units remain intact, even if they aren't under the same umbrella anymore. If they can be profitable, then they'll be back in some form or another.
Coach T
Lehman's Mortgage Business Is Back From The Dead(Look at the last paragraph)
http://www.businessinsider.com/lehman-is-back-from-the-dead-and-back-to-mortgage-lending-2009-10
Vincent Fernando|Oct. 21, 2009, 3:23 PM | 393 |5
PrintTags: Lehman Brothers, Financial Services, Housing
Lehman's old mortgage lending business is back, and expanding its underwriting of mortgages once again.
Aurora Loan Services, now owned by Aurora Bank FSB, is hiring and will grow its lending despite its troubled past.
Bloomberg: Aurora, which ranked as the top Wall Street-owned lender with $98 billion of originations in 2004 and 2005, announced plans to end most lending in January 2008. During the bankruptcy, Lehman has been lending to Aurora Bank, as well as contributing assets to the unit and buying its loans, to avert a regulatory seizure and protect its stake.
...
Aurora ranked as the 14th-largest servicer as of June 30, handling billing and collections on about $93 billion of loans, according to industry newsletter Inside Mortgage Finance. Aurora has been granting new mortgages to its servicing customers, one of the people said.
This could actually be a good move. The company will be focusing on government-backed mortgages that are less risky than its past work, and due to a lack of sufficient competition in the space, could make a lot of money doing so.
“For the ones that are left, there’s opportunity,” Steve Jacobson, chief executive officer of Madison, Wisconsin-based Fairway Independent Mortgage Corp., said in an interview. His originations soared 67 percent from a year earlier to $2.6 billion in the first nine months of 2009.
This is another example of how Lehman wasn't "lost". The people are still around, as is much of the infrastucture. Many complete business units remain intact, even if they aren't under the same umbrella anymore. If they can be profitable, then they'll be back in some form or another.
Hank Paulson ordered LEHMAN to open its books to Goldman Sachs, UNBELIEVABLE!
Here comes the next lawsuit...you won't believe it.
http://blogs.reuters.com/felix-salmon/2009/10/21/how-paulson-gave-goldman-the-lehman-heads-up/
How Paulson gave Goldman the Lehman heads-up
Post a comment (4)Posted by: Felix Salmon
Tags: banking, banking, technocrats
The secret Paulson-Goldman meeting wasn’t the only time that Hank Paulson treated his buddies at Goldman Sachs especially well while at Treasury. In fact, it wasn’t the only time he did so before he got the now-famous waiver.
A bit further on in the Sorkin book, while Paulson is trying to work out what should be done with an imploding Lehman Brothers, we find this:
If all that weren’t enough to deal with, [Lehman president Bart] McDade had just had a baffling conversation with [CEO Dick] Fuld, who informed him that Paulson had called him directly to suggest that the firm open up its books to Goldman Sachs. The way Fuld described it, Goldman was effectively advising Treasury. Paulson was also demanding a thorough review of Lehman’s confidential numbers, courtesy of Goldman Sachs.
McDade, though never much of a Goldman conspiracy theorist, found Fuld’s report discomfiting, but moments later was on the phone with Harvey Schwartz, Goldman’s head of capital markets. “I’m following up at Hank’s request,” he began.
After another perplexing conversation, McDade walked down the hall and told Alex Kirk to immediately call Schwartz at Goldman, instructing him to set up a meeting and getting them to sign a confidentiality agreement.
“This is coming directly from Paulson,” he explained.
In many ways, this is worse than Paulson’s meeting with Goldman’s board: in this case, Paulson is forcing Lehman to open its books fully to a direct competitor, for no obvious reason. And in this case it’s not at all obvious that Paulson got a sign off from Treasury’s general counsel before doing so.
I suspect this is what happens when you do all your business by phone rather than by email: you’re so comfortable with the fact that you’re not leaving any kind of paper trail, it becomes much easier to cross the line and abuse your position as the most powerful Treasury secretary in living memory to the benefit of your former firm. If the Moscow meeting wasn’t enough to precipitate some kind of Congressional investigation of Paulson, this should be.
More to the story follow the link above...
Coach T
Hank Paulson ordered LEHMAN to open its books to Goldman Sachs, UNBELIEVABLE!
Here comes the next lawsuit...you won't believe it.
http://blogs.reuters.com/felix-salmon/2009/10/21/how-paulson-gave-goldman-the-lehman-heads-up/
How Paulson gave Goldman the Lehman heads-up
Post a comment (4)Posted by: Felix Salmon
Tags: banking, banking, technocrats
The secret Paulson-Goldman meeting wasn’t the only time that Hank Paulson treated his buddies at Goldman Sachs especially well while at Treasury. In fact, it wasn’t the only time he did so before he got the now-famous waiver.
A bit further on in the Sorkin book, while Paulson is trying to work out what should be done with an imploding Lehman Brothers, we find this:
If all that weren’t enough to deal with, [Lehman president Bart] McDade had just had a baffling conversation with [CEO Dick] Fuld, who informed him that Paulson had called him directly to suggest that the firm open up its books to Goldman Sachs. The way Fuld described it, Goldman was effectively advising Treasury. Paulson was also demanding a thorough review of Lehman’s confidential numbers, courtesy of Goldman Sachs.
McDade, though never much of a Goldman conspiracy theorist, found Fuld’s report discomfiting, but moments later was on the phone with Harvey Schwartz, Goldman’s head of capital markets. “I’m following up at Hank’s request,” he began.
After another perplexing conversation, McDade walked down the hall and told Alex Kirk to immediately call Schwartz at Goldman, instructing him to set up a meeting and getting them to sign a confidentiality agreement.
“This is coming directly from Paulson,” he explained.
In many ways, this is worse than Paulson’s meeting with Goldman’s board: in this case, Paulson is forcing Lehman to open its books fully to a direct competitor, for no obvious reason. And in this case it’s not at all obvious that Paulson got a sign off from Treasury’s general counsel before doing so.
I suspect this is what happens when you do all your business by phone rather than by email: you’re so comfortable with the fact that you’re not leaving any kind of paper trail, it becomes much easier to cross the line and abuse your position as the most powerful Treasury secretary in living memory to the benefit of your former firm. If the Moscow meeting wasn’t enough to precipitate some kind of Congressional investigation of Paulson, this should be.
More to the story follow the link above...
Coach T
Hank Paulson ordered LEHMAN to open its books to Goldman Sachs, UNBELIEVABLE!
Here comes the next lawsuit...you won't believe it.
http://blogs.reuters.com/felix-salmon/2009/10/21/how-paulson-gave-goldman-the-lehman-heads-up/
How Paulson gave Goldman the Lehman heads-up
Post a comment (4)Posted by: Felix Salmon
Tags: banking, banking, technocrats
The secret Paulson-Goldman meeting wasn’t the only time that Hank Paulson treated his buddies at Goldman Sachs especially well while at Treasury. In fact, it wasn’t the only time he did so before he got the now-famous waiver.
A bit further on in the Sorkin book, while Paulson is trying to work out what should be done with an imploding Lehman Brothers, we find this:
If all that weren’t enough to deal with, [Lehman president Bart] McDade had just had a baffling conversation with [CEO Dick] Fuld, who informed him that Paulson had called him directly to suggest that the firm open up its books to Goldman Sachs. The way Fuld described it, Goldman was effectively advising Treasury. Paulson was also demanding a thorough review of Lehman’s confidential numbers, courtesy of Goldman Sachs.
McDade, though never much of a Goldman conspiracy theorist, found Fuld’s report discomfiting, but moments later was on the phone with Harvey Schwartz, Goldman’s head of capital markets. “I’m following up at Hank’s request,” he began.
After another perplexing conversation, McDade walked down the hall and told Alex Kirk to immediately call Schwartz at Goldman, instructing him to set up a meeting and getting them to sign a confidentiality agreement.
“This is coming directly from Paulson,” he explained.
In many ways, this is worse than Paulson’s meeting with Goldman’s board: in this case, Paulson is forcing Lehman to open its books fully to a direct competitor, for no obvious reason. And in this case it’s not at all obvious that Paulson got a sign off from Treasury’s general counsel before doing so.
I suspect this is what happens when you do all your business by phone rather than by email: you’re so comfortable with the fact that you’re not leaving any kind of paper trail, it becomes much easier to cross the line and abuse your position as the most powerful Treasury secretary in living memory to the benefit of your former firm. If the Moscow meeting wasn’t enough to precipitate some kind of Congressional investigation of Paulson, this should be.
More to the story follow the link above...
Coach T
There are two positives that will increase the value about being able to get active in the mortgage market again.
1) The Office of Thrift Supervision and the Feds must have let Lehman start selling CD's again to attract capital. That is why Aurora Bank has gotten all of the funds from LBHI.
2) You cannot be in the Government mortgage market without having the company and its underwriters qualify under the FHA/VA requirements. Aurora Bank must have qualified... because if you can't get this qualification the Government will not issue its Mortgage Insurance Premium that guarantees the FHA/VA loans.
Also, according to the court dockets and July creditors meeting A&M is still using the most conservative mark to market models for pricing its portfolio. That means if anyone else were to look at the value it could be marked up to where everyone else has been setting prices.
Tomorrow is the last day to file a derivatives claim! We are slowing making headway.
Keep the Faith!
Coach T
There are two positives that will increase the value about being able to get active in the mortgage market again.
1) The Office of Thrift Supervision and the Feds must have let Lehman start selling CD's again to attract capital. That is why Aurora Bank has gotten all of the funds from LBHI.
2) You cannot be in the Government mortgage market without having the company and its underwriters qualify under the FHA/VA requirements. Aurora Bank must have qualified... because if you can't get this qualification the Government will not issue its Mortgage Insurance Premium that guarantees the FHA/VA loans.
Also, according to the court dockets and July creditors meeting A&M is still using the most conservative mark to market models for pricing its portfolio. That means if anyone else were to look at the value it could be marked up to where everyone else has been setting prices.
Tomorrow is the last day to file a derivatives claim! We are slowing making headway.
Keep the Faith!
Coach T
There are two positives that will increase the value about being able to get active in the mortgage market again.
1) The Office of Thrift Supervision and the Feds must have let Lehman start selling CD's again to attract capital. That is why Aurora Bank has gotten all of the funds from LBHI.
2) You cannot be in the Government mortgage market without having the company and its underwriters qualify under the FHA/VA requirements. Aurora Bank must have qualified... because if you can't get this qualification the Government will not issue its Mortgage Insurance Premium that guarantees the FHA/VA loans.
Also, according to the court dockets and July creditors meeting A&M is still using the most conservative mark to market models for pricing its portfolio. That means if anyone else were to look at the value it could be marked up to where everyone else has been setting prices.
Tomorrow is the last day to file a derivatives claim! We are slowing making headway.
Keep the Faith!
Coach T
LBIE/PWC CREDITOR UPDATE LINK
http://www.pwc.co.uk/eng/issues/lehmans_joint_administrators_progress_report_140409.html
Here is a link to the actual information released by PWC on the creditors update from September. This information just posted to the website.
As usual, the media posted the most disturbing news about an additional 90B that LBIE was going to claim against LBHI. When you look at the Executive Summary in Section 2, refer to area titled "Key Achievements" and "Progress".
Under "Key Achievements" you will see the following claims...
$38.4B against LBHI Controlled Entities
$80B Gross Claims against Non-LBHI Controlled Entities LBI, LBJ (Japan), LBF (Switzerland)
You will see under "Progress"
$90B "Guarantee" Claims against LBHI prior to guarantee claims bar date.
I believe that these two larger claims are protecting each other. If LBIE can't get paid by the claims it had filed under the Non-LBHI Controlled Claims, LBIE is covering themselves with the general guarantee claim that has to be filed soon...IMO these are the same claims. Read it for yourselves.
As always thoughts are welcome.
By the way, you know that LBHI is LBIE largest creditor RIGHT?
Enjoy, the truth will come out.
Coach T
LBIE/PWC CREDITOR UPDATE LINK
http://www.pwc.co.uk/eng/issues/lehmans_joint_administrators_progress_report_140409.html
Here is a link to the actual information released by PWC on the creditors update from September. This information just posted to the website.
As usual, the media posted the most disturbing news about an additional 90B that LBIE was going to claim against LBHI. When you look at the Executive Summary in Section 2, refer to area titled "Key Achievements" and "Progress".
Under "Key Achievements" you will see the following claims...
$38.4B against LBHI Controlled Entities
$80B Gross Claims against Non-LBHI Controlled Entities LBI, LBJ (Japan), LBF (Switzerland)
You will see under "Progress"
$90B "Guarantee" Claims against LBHI prior to guarantee claims bar date.
I believe that these two larger claims are protecting each other. If LBIE can't get paid by the claims it had filed under the Non-LBHI Controlled Claims, LBIE is covering themselves with the general guarantee claim that has to be filed soon...IMO these are the same claims. Read it for yourselves.
As always thoughts are welcome.
By the way, you know that LBHI is LBIE largest creditor RIGHT?
Enjoy, the truth will come out.
Coach T
LBIE/PWC CREDITOR UPDATE LINK
http://www.pwc.co.uk/eng/issues/lehmans_joint_administrators_progress_report_140409.html
Here is a link to the actual information released by PWC on the creditors update from September. This information just posted to the website.
As usual, the media posted the most disturbing news about an additional 90B that LBIE was going to claim against LBHI. When you look at the Executive Summary in Section 2, refer to area titled "Key Achievements" and "Progress".
Under "Key Achievements" you will see the following claims...
$38.4B against LBHI Controlled Entities
$80B Gross Claims against Non-LBHI Controlled Entities LBI, LBJ (Japan), LBF (Switzerland)
You will see under "Progress"
$90B "Guarantee" Claims against LBHI prior to gaurantee claims bar date.
I believe that these two larger claims are protecting each other. If LBIE can't get paid by the claims it had filed under the Non-LBHI Controlled Claims, LBIE is covering themsleves with the general Guarantee claim that has to be filed soon...IMO these are the same claims. Read it for yourselves.
As always thoughts are welcome.
By the way, you know that LBHI is LBIE largest creditor RIGHT?
Enjoy, the truth will come out.
Coach T
No problem Rikkitik...
Coach T
I am saying that when it comes time to file for claims against LBIE by LBHI...LBHI will have as much or more in claims against LBIE. But you won't read about that right now because the media is concentrating on selling headlines.
LBHI filing on LBIE won't happen until next year.
By the way, Goldman Sachs just bought ANOTHER $56M in derivatives claims according to LBHI court dockets.
Coach T
db
Thursday, October 22, 2009 is the last day to file a claim for a derivative contract. That is what you are reading about.
LBIE and LBHI, et.al., had hundreds of contracts of all types, swaps, etc. that were back and forth.
Those knottheads at PWC are moving way too slow, compared to A&M. PWC does not expect to have a final bar date to file claims until after the first of 2010.
We are going to see a lot of press about the LBIE claims for the next week.
Keep an eye out for the court transcripts from last week. It will give us a great read on how Judge Peck will react IMO.
Coach T
I think the FNM FRE report by KBW and how they are going to be worthless is giving the "Lehman/WAMU Zombies an excuse to take profits and get us ready to challenge the $.40's again by end of month.
IMO...
Coach T
FYI...I just spoke with Milbank & Tweed the Unsecured Creditors legal team. I asked when the www.lehmancreditors.com website would post last weeks court transcripts.
They said it should be posted by the end of the day possibly.
These transcripts will shed a lot of light on how Judge Peck was responding to the hearings. I think it will also be a good harbinger of what we can expect before the end of the year.
By the way...Mr. Marsal is due in November to give a creditors update much like the one in July. I have not as yet seen a schedule for it though.
Coach T
The volume flush is upon us. Notice the ask does not stay down. It pops back up to $.18.
If all of this volume that runs out the stops and touches all of the moving averages does not close down here...if it closes at $.18 or more (where the ask is) it will look mighty nice on the charts.
I know, I know, its a BK company and were looking at charts. Do not try this at home.
Coach T
I think it is clear that Judge Peck had nothing to do with the "offsite" negotiations behind the scenes. As a matter of fact, the night the "Presented Sale" was approved by Judge Peck he left the door open that possibility existed that mistakes could have been made that might have to be revisited at a future date.
He referenced the tremendous amount people working under a very short time period to complete a huge task.
It is clear in the unsealed documents that Barclays was going after every asset it thought it could get its hands on. Even threatening not to close the deal if more assets were not found at the last crucial minute.
Keep the Faith! The truth is coming out.
Coach T
It is starting to look exactly that way, isn't it...when the SIPA Trustee is making motions with two separate declarations from two separate persons...it certainly gives MUCH MORE CREDIBILITY...IMO.
The Trustee has no skin in the game...completely impartial. What incentive would the Trustee have other than getting at the truth and correcting the process?
Coach T
NEWLY DISCOVERED EVIDENCED UNEARTHED THROUGH RULE 2004
DISCOVERY WARRANTS RELIEF FROM SALE ORDER UNDER RULE 60(B)
(Taken from the Unsecured Creditors Committee Motion LBHI Docket #5531)
Since the Court entered the Sale Order, myriad facts have been discovered that simply were not presented for the Court's consideration. These include, without limitation:
the implied $5 billion discount that was neither disclosed in the APA nor disclosed to the Court;
• the restructuring of the transaction that resulted in Barclays acquiring the brokerdealer business through the Barclays-LBI Repurchase Agreement (and not the APA),
including the "haircut" associated with the Fed Portfolio securities;
• the Lehman Seller's acquiescence to Barclays' last-minute demands for additional assets, and their efforts to find additional assets until Barclays was satisfied that there
was nothing left;
• the transfer of unencumbered securities in the non-actionable box which may have totaled $2.3 billion (not $1.9 billion); the OCC Accounts, which may have totaled between $2.3 billion and $5.0 billion and the 15c3 Securities (which may have totaled
$800 million);
• even though the haircut under the Fed Repurchase Agreement totaled between $4.4. billion and $5 billion, the haircut under the Barclays —LBI Repurchase Agreement was $5 billion (and possibly as high as $7.190 billion) -- a haircut that was retained by Barclays as part of the transaction; 129 and
• overstatement of the Cure and Compensation Liabilities, which were grossly overestimated at a purported $4.25 billion -- but instead totaled only $1.3-$1.7 billion. Each of these newly-discovered facts demonstrate the Sale Transaction that was consummated differed significantly from the transaction described to the Court.
I think that about sums it all up!
Enjoy the Ride !
Coach T
NEWLY DISCOVERED EVIDENCED UNEARTHED THROUGH RULE 2004
DISCOVERY WARRANTS RELIEF FROM SALE ORDER UNDER RULE 60(B)
(Taken from the Unsecured Creditors Committee Motion LBHI Docket #5531)
Since the Court entered the Sale Order, myriad facts have been discovered that simply were not presented for the Court's consideration. These include, without limitation:
the implied $5 billion discount that was neither disclosed in the APA nor disclosed to the Court;
• the restructuring of the transaction that resulted in Barclays acquiring the brokerdealer business through the Barclays-LBI Repurchase Agreement (and not the APA),
including the "haircut" associated with the Fed Portfolio securities;
• the Lehman Seller's acquiescence to Barclays' last-minute demands for additional assets, and their efforts to find additional assets until Barclays was satisfied that there
was nothing left;
• the transfer of unencumbered securities in the non-actionable box which may have totaled $2.3 billion (not $1.9 billion); the OCC Accounts, which may have totaled between $2.3 billion and $5.0 billion and the 15c3 Securities (which may have totaled
$800 million);
• even though the haircut under the Fed Repurchase Agreement totaled between $4.4. billion and $5 billion, the haircut under the Barclays —LBI Repurchase Agreement was $5 billion (and possibly as high as $7.190 billion) -- a haircut that was retained by Barclays as part of the transaction; 129 and
• overstatement of the Cure and Compensation Liabilities, which were grossly overestimated at a purported $4.25 billion -- but instead totaled only $1.3-$1.7 billion. Each of these newly-discovered facts demonstrate the Sale Transaction that was consummated differed significantly from the transaction described to the Court.
I think that about sums it all up!
Enjoy the Ride !
Coach T
NEWLY DISCOVERED EVIDENCED UNEARTHED THROUGH RULE 2004
DISCOVERY WARRANTS RELIEF FROM SALE ORDER UNDER RULE 60(B)
(Taken from the Unsecured Creditors Committee Motion LBHI Docket #5531)
Since the Court entered the Sale Order, myriad facts have been discovered that simply were not presented for the Court's consideration. These include, without limitation:
the implied $5 billion discount that was neither disclosed in the APA nor disclosed to the Court;
• the restructuring of the transaction that resulted in Barclays acquiring the brokerdealer business through the Barclays-LBI Repurchase Agreement (and not the APA),
including the "haircut" associated with the Fed Portfolio securities;
• the Lehman Seller's acquiescence to Barclays' last-minute demands for additional assets, and their efforts to find additional assets until Barclays was satisfied that there
was nothing left;
• the transfer of unencumbered securities in the non-actionable box which may have totaled $2.3 billion (not $1.9 billion); the OCC Accounts, which may have totaled between $2.3 billion and $5.0 billion and the 15c3 Securities (which may have totaled
$800 million);
• even though the haircut under the Fed Repurchase Agreement totaled between $4.4. billion and $5 billion, the haircut under the Barclays —LBI Repurchase Agreement was $5 billion (and possibly as high as $7.190 billion) -- a haircut that was retained by Barclays as part of the transaction; 129 and
• overstatement of the Cure and Compensation Liabilities, which were grossly overestimated at a purported $4.25 billion -- but instead totaled only $1.3-$1.7 billion. Each of these newly-discovered facts demonstrate the Sale Transaction that was consummated differed significantly from the transaction described to the Court.
I think that about sums it all up!
Enjoy the Ride !
Coach T
LBI DOCKET #1972...DECLARATION BY THE SIPA TRUSTEE THAT HE WAS NOT AWARE OF THE CHANGES IN THE SALE TO BARCLAYS!
Now the Trustee is getting his two cents in. Judge Peck is not going to have a choice.
I really don't think the Trustee has anything to gain by making these statements in his 7 page declaration.
The noose is getting tighter...
Coach T
LBI DOCKET #1972...DECLARATION BY THE SIPA TRUSTEE THAT HE WAS NOT AWARE OF THE CHANGES IN THE SALE TO BARCLAYS!
Now the Trustee is getting his two cents in. Judge Peck is not going to have a choice.
I really don't think the Trustee has anything to gain by making these statements in his 7 page declaration.
The noose is getting tighter...
Coach T
LBI DOCKET #1972...DECLARATION BY THE SIPA TRUSTEE THAT HE WAS NOT AWARE OF THE CHANGES IN THE SALE TO BARCLAYS!
Now the Trustee is getting his two cents in. Judge Peck is not going to have a choice.
I really don't think the Trustee has anything to gain by making these statements in his 7 page declaration.
The noose is getting tighter...
Coach T
After reading the entire 97 pages of the LBHI Docket #5514...I cannot imagine having a better position going into battle than the LEHMAN team has put together.
In addition, Docket #5531 was filed by the Unsecured Creditors committee and comes to virtually all of the same conclusions.
Suffice it to say, if you read anything this weekend...these two Dockets should be at the top of the list!
Do not take my opinion...read it for yourself. The presentation is masterful. I do not see any way that Barclays will not have to come up with $8-10B back to LEHMAN.
Furthermore, I believe that there will be some additional items added by Judge Peck that will increase the size of the money returned...because of the way everything was handled behind the courts back. It is all there emails, depositions, interviews, admissions, etc.
Read for yourself!
Enjoy the Ride!
After reading the entire 97 pages of the LBHI Docket #5514...I cannot imagine having a better position going into battle than the LEHMAN team has put together.
In addition, Docket #5531 was filed by the Unsecured Creditors committee and comes to virtually all of the same conclusions.
Suffice it to say, if you read anything this weekend...these two Dockets should be at the top of the list!
Do not take my opinion...read it for yourself. The presentation is masterful. I do not see any way that Barclays will not have to come up with $8-10B back to LEHMAN.
Furthermore, I believe that there will be some additional items added by Judge Peck that will increase the size of the money returned...because of the way everything was handled behind the courts back. It is all there emails, depositions, interviews, admissions, etc.
Read for yourself!
Enjoy the Ride!
Coach T
LBHI DOCKET #5514 HAS THE UNSEALED PAGES IN IT!
http://chapter11.epiqsystems.com/docket/docketlist.aspx?pk=de7ced2b-52e7-4172-92e1-9ec425933bd0
Grab your favorite cocktail and let's see what all of the LEHMAN team wanted everyone to know about!
The Perfect Storm Continues!
Coach T
LBHI DOCKET #5514 HAS THE UNSEALED PAGES IN IT!
http://chapter11.epiqsystems.com/docket/docketlist.aspx?pk=de7ced2b-52e7-4172-92e1-9ec425933bd0
Grab your favorite cocktail and let's see what all of the LEHMAN team wanted everyone to know about!
The Perfect Storm Continues!
Coach T
LBHI DOCKET #5514 HAS THE UNSEALED PAGES IN IT!
http://chapter11.epiqsystems.com/docket/docketlist.aspx?pk=de7ced2b-52e7-4172-92e1-9ec425933bd0
Grab your favorite cocktail and let's see what all of the LEHMAN team wanted everyone to know about!
The Perfect Storm Continues!
Coach T
"Lehman and Barclays were in court on Thursday for a status conference over their dispute, in which they were discussing a schedule for evidentiary hearings."
http://www.reuters.com/article/marketsNews/idUSN1524013020091015
UPDATE 1-Barclays owed $3 bln in assets from Lehman-lawyer
Thu Oct 15, 2009 3:30pm EDT
NEW YORK, Oct 15 (Reuters) - Barclays Capital (BARC.L) is still owed billions in assets from bankrupt Lehman Brothers Holdings Inc (LEHMQ.PK), whose U.S. broker-dealer business it purchased last year, a Barclays lawyer told a federal judge on Thursday.
The British bank's lawyer, Hamish Hume, told Judge James Peck of federal bankruptcy court in Manhattan that Lehman, which is seeking to change the terms of the transaction, has not yet delivered $3 billion of assets he said is owed to Barclays. He did not disclose what that assets were.
Lehman said in court documents last month that Barclays Capital got an $8.2 billion "windfall profit" from excess assets it took in the fire sale of Lehman's U.S. brokerage business, a deal quickly assembled in September 2008 in the days following the Lehman bankruptcy.
Lehman claimed that "critical changes" were made to the sale in between the time the sale order was signed and the deal was closed, resulting in Barclays gaining control of assets that Lehman said were not supposed to be part of the purchase.
A lawyer for Lehman did not counter Barclays claim in court.
Barclays has said Lehman is making "an opportunistic claim" and trying to "re-trade the deal."
Enjoy,
Coach T