Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Looks like the Feds let Aurora start selling Certificates of Deposit again!
http://www.bankaholic.com/former-lehman-bank-tops-2-yr-cd-rates/
That will help the value. Mr. Marsal was quite persistent on wnating to get Aurora to sell CD's again. I believe LBHI put about $500M in the bank to get ready if the Feds did not allow Aurora to sell CD's.
The Perfect Storm...
Coach T
EXAMINER SEEKING COURT ASSISTANCE TO COMPEL ABN AMRO TO PRODUCE INFORMATION PERTAINING TO FALSE RUMORS AND ASSISTING NAKED SHORT SELLING! (LBHI Docket #5306)
"The Examiner has requested documents from ABN AMRO to explore a false rumor concerning Lehman that may have been initiated, or at the very least repeated, by an ABN AMRO employee and that may have contributed to the naked short selling of Lehman stock. As set forth more fully below, the Examiner has gone to great lengths to obtain voluntary compliance from ABN AMRO, but has been met with evasion or worse. The Examiner therefore respectfully requests that this Court order ABN AMRO to produce within 5 days of this Court’s order: (1) a Rule 30(b)(6) witness who can testify under oath concerning ABN AMRO’sIT systems so that the Examiner has sworn testimony against which to evaluate ABN AMRO’s conflicting accounts; and (2) all documents responsive to the Examiner’s subpoena."
"Accordingly, the Examiner respectfully requests that this Court direct ABN AMRO to comply immediately with the Subpoena."
The Perfect Storm! Now we are getting to the "nitty gritty".
Coach T
EXAMINER SEEKING COURT ASSISTANCE TO COMPEL ABN AMRO TO PRODUCE INFORMATION PERTAINING TO FALSE RUMORS AND ASSISTING NAKED SHORT SELLING! (LBHI Docket #5306)
"The Examiner has requested documents from ABN AMRO to explore a false rumor concerning Lehman that may have been initiated, or at the very least repeated, by an ABN AMRO employee and that may have contributed to the naked short selling of Lehman stock. As set forth more fully below, the Examiner has gone to great lengths to obtain voluntary compliance from ABN AMRO, but has been met with evasion or worse. The Examiner therefore respectfully requests that this Court order ABN AMRO to produce within 5 days of this Court’s order: (1) a Rule 30(b)(6) witness who can testify under oath concerning ABN AMRO’sIT systems so that the Examiner has sworn testimony against which to evaluate ABN AMRO’s conflicting accounts; and (2) all documents responsive to the Examiner’s subpoena."
"Accordingly, the Examiner respectfully requests that this Court direct ABN AMRO to comply immediately with the Subpoena."
The Perfect Storm! Now we are getting to the "nitty gritty".
Coach T
EXAMINER SEEKING COURT ASSISTANCE TO COMPEL ABN AMRO TO PRODUCE INFORMATION PERTAINING TO FALSE RUMORS AND ASSISTING NAKED SHORT SELLING! (LBHI Docket #5306)
"The Examiner has requested documents from ABN AMRO to explore a false rumor concerning Lehman that may have been initiated, or at the very least repeated, by an ABN AMRO employee and that may have contributed to the naked short selling of Lehman stock. As set forth more fully below, the Examiner has gone to great lengths to obtain voluntary compliance from ABN AMRO, but has been met with evasion or worse. The Examiner therefore respectfully requests that this Court order ABN AMRO to produce within 5 days of this Court’s order: (1) a Rule 30(b)(6) witness who can testify under oath concerning ABN AMRO’sIT systems so that the Examiner has sworn testimony against which to evaluate ABN AMRO’s conflicting accounts; and (2) all documents responsive to the Examiner’s subpoena."
"Accordingly, the Examiner respectfully requests that this Court direct ABN AMRO to comply immediately with the Subpoena."
The Perfect Storm! Now we are getting to the "nitty gritty".
Coach T
I agree Faust...these decisions are setting precedent.
I believe Mr. Marsal stated early on that if they would have had 60 days to plan before the filing they could have saved $50-70 Billion in Assets for the LEHMAN estate. I think that was directly related to the "netting out" and "termination" of derivatives, swaps, etc. through notification that must have been pouring in. We now know that the court in forcing proper termination information be provided PRIOR to termination and that LEHMAN can negotiate pricing EVEN IF NOTICE OF TERMINATION HAS BEEN GIVEN.
At the time, Mr. Marsal did not know how courts would decision derivatives, etc. IMO you are seeing the incremental adding of the assets back to the estate.
LEHMAN won't get all 50-70B back but the wind is at our back currently and I don't think it is accounted for int the 12/31/08 Balance Sheet.
MARKUPS COMING!
Keep the Faith!
Coach T
I personally take Mr. Marsal at his word when he says that intercompany receivables vs. payables net to LBHI for about $50B. IMO all of the claims that are being made are for securities like bonds, derivatives, account money yet to be disbursed, etc. that is accounted for in the balance sheet.
Remember there is a notional $39 TRILLION dollars worth of contracts so to have $3-4 Trillion that is under claims should be expected. It is the media that will only tell half of the story to sell ad time/space.
Coach T
$7.6 M owed to LEHMAN is only a FRACTION OF MONEY DOLLAR GENERAL OWES to LEHMAN!
According to court docket #5304 Dollar General thinks it terminated its derivative agreement with LEHMAN last October 30, 2008...for a PAYABLE AMOUNT TO LEHMAN FOR $7.6 MILLION...
LEHMAN is requesting the court make Dollar General provide additional information...says that the $7.6M amount is only a FRACTION of the amount owed to LEHMAN!
LEHMAN in its creditor meeting said it has been notified by hundreds/thousands of counterparties that agreements had been terminated due to the default by the BK.
Mr. Marsal also said LEHMAN would be calculating each transaction to make sure money was settled properly.
I think the court decisions as of the last three weeks are serving notice that MAYBE Counterparties did not properly terminate and calculate positions.
Where is the popcorn...sit back and enjoy the movie.
Just ask Metavante Corporation they ignored responding to LEHMAN and had to pay $7M+ on a trade that they owed to LEHMAN but thought the trade had been terminated due to the default by filing Chapter 11.
More MEAT ON THE BONE!
Coach T
$7.6 M owed to LEHMAN is only a FRACTION OF MONEY DOLLAR GENERAL OWES to LEHMAN!
According to court docket #5304 Dollar General thinks it terminated its derivative agreement with LEHMAN last October 30, 2008...for a PAYABLE AMOUNT TO LEHMAN FOR $7.6 MILLION...
LEHMAN is requesting the court make Dollar General provide additional information...says that the $7.6M amount is only a FRACTION of the amount owed to LEHMAN!
LEHMAN in its creditor meeting said it has been notified by hundreds/thousands of counterparties that agreements had been terminated due to the default by the BK.
Mr. Marsal also said LEHMAN would be calculating each transaction to make sure money was settled properly.
I think the court decisions as of the last three weeks are serving notice that MAYBE Counterparties did not properly terminate and calculate positions.
Where is the popcorn...sit back and enjoy the movie.
Just ask Metavante Corporation they ignored responding to LEHMAN and had to pay $7M+ on a trade that they owed to LEHMAN but thought the trade had been terminated due to the default by filing Chapter 11.
More MEAT ON THE BONE!
Coach T
$7.6 M owed to LEHMAN is only a FRACTION OF MONEY DOLLAR GENERAL OWES to LEHMAN!
According to court docket #5304 Dollar General thinks it terminated its derivative agreement with LEHMAN last October 30, 2008...for a PAYABLE AMOUNT TO LEHMAN FOR $7.6 MILLION...
LEHMAN is requesting the court make Dollar General provide additional information...says that the $7.6M amount is only a FRACTION of the amount owed to LEHMAN!
LEHMAN in its creditor meeting said it has been notified by hundreds/thousands of counterparties that agreements had been terminated due to the default by the BK.
Mr. Marsal also said LEHMAN would be calculating each transaction to make sure money was settled properly.
I think the court decisions as of the last three weeks are serving notice that MAYBE Counterparties did not properly terminate and calculate positions.
Where is the popcorn...sit back and enjoy the movie.
Just ask Metavante Corporation they ignored responding to LEHMAN and had to pay $7M+ on a trade that they owed to LEHMAN but thought the trade had been terminated due to the default by filing Chapter 11.
More MEAT ON THE BONE!
Coach T
Nice chart once again Brikk...
Weak hands have had their chance to take profits and protect capital. Strong hands are moving back to the offense.
The Perfect Storm continues to build.
Coach T
Consolidation looks good...weak hands have been relieved of their stress/profits. Strong hands now positioning for next week.
Smart money knows that all the all claims being reported in the news to sell media advertising is nothing new. These claims are already factored into the balance sheet thru dent and/or derivatives.
Weekly charts getting positioned and the overbought condition has been corrected. All in IMO.
Close around $.20-$.22 would be just fine.
Keep the Faith!
Coach T
You have to see this!
One year graph of the S&P/LSTA 100 Leveraged Loan Index...How much do you think some of the LEHMAN portfolios have gone up since the balance sheet of 12/31/08? Look where this was on 12/31/08!
http://www.bloomberg.com/apps/quote?ticker=SPBDLLB%3AIND
Index Climbs
Loan CDOs have gained as prices on the underlying debt climbed from record lows and prospects for companies failing diminished, Roy said. The S&P/LSTA 100 Leveraged Loan index has gained 19.6 cents since the end of March to 86 cents on the dollar as of yesterday. Loans have gained a record 46.9 percent this year after losing an unprecedented 28.1 percent last year, the S&P/LSTA index shows.
That’s boosted CLO portions ranked AA, the third-highest level of investment grade, which have more than doubled in the past four months to as much as 70 cents on the dollar. Securities ranked BBB have tripled to 35 cents, Roy said.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a5KbYLsaKQhU
Once again...The Perfect Storm...you won't hear it in the media but you can piece it together, one piece of evidence at a time!
Coach T
You have to see this!
One year graph of the S&P/LSTA 100 Leveraged Loan Index...How much do you think some of the LEHMAN portfolios have gone up since the balance sheet of 12/31/08? Look where this was on 12/31/08!
http://www.bloomberg.com/apps/quote?ticker=SPBDLLB%3AIND
Index Climbs
Loan CDOs have gained as prices on the underlying debt climbed from record lows and prospects for companies failing diminished, Roy said. The S&P/LSTA 100 Leveraged Loan index has gained 19.6 cents since the end of March to 86 cents on the dollar as of yesterday. Loans have gained a record 46.9 percent this year after losing an unprecedented 28.1 percent last year, the S&P/LSTA index shows.
That’s boosted CLO portions ranked AA, the third-highest level of investment grade, which have more than doubled in the past four months to as much as 70 cents on the dollar. Securities ranked BBB have tripled to 35 cents, Roy said.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a5KbYLsaKQhU
Once again...The Perfect Storm...you won't hear it in the media but you can piece it together, one piece of evidence at a time!
Coach T
Buyouts Of Finl Svcs Cos To Increase On Rising Values - Study
DOW JONES NEWSWIRES
LONDON (Dow Jones)--Private equity activity in the financial services industry is poised to increase as valuations pick up and companies offload non-core assets, according to research released Thursday.
Over the first half of this year private equity funds invested just $4.9 billion in 24 deals, down from $19.2 billion in 89 deals over the same period last year, said Freeman & Co., advisor to the financial services industry.
The largest transactions involved the rescue of U.S. banks such as the $1.3 billion buyout of IndyMac Federal Bank by JC Flowers and Stone Point and the subsequent acquisition of Bank United for $1 billion by Blackstone Group (BX), Carlyle Group and Centerbridge.
"Public company valuations in financial services are off their lows to more realistic levels," said Eric C. Weber managing director of Freeman & Co.
"We expect private equity firms to have ample opportunities as large financial institutions accelerate the sale of non-core assets now that valuations have improved," he added.
Several buyout shops have geared up to take advantage of the disruption in the financial services sector caused by the collapse of Lehman Brothers Holdings Inc. (LEHMQ) and JPMorgan Chase Co.'s (JPM) acquisition of near-failed Bear Stearns last year.
For example, London-based CVC Capital Partners set up set up a new Financial Institutions Group specifically to target the sector and only narrowly lost out in its pursuit of Barclays PLC's (BCS) iShares business earlier this year. Other firms such as Permira have boosted their expertise in the sector with a number of appointments.
-By Marietta Cauchi, Dow Jones Newswires; +44 207 842 9241; marietta.cauchi@dowjones.com
http://www.djnewsplus.com/article/DN-CO-20090924-008579.html?mod=J1&a=T+Wire&h=Buyouts+Of+Finl+Svcs+Cos+To+Increase+On+Rising+Values+-+Study+
Copyright (c) 2009 Dow Jones & Company, Inc.
More Proof Asset Values Are INCREASING!
Coach T
Buyouts Of Finl Svcs Cos To Increase On Rising Values - Study
DOW JONES NEWSWIRES
LONDON (Dow Jones)--Private equity activity in the financial services industry is poised to increase as valuations pick up and companies offload non-core assets, according to research released Thursday.
Over the first half of this year private equity funds invested just $4.9 billion in 24 deals, down from $19.2 billion in 89 deals over the same period last year, said Freeman & Co., advisor to the financial services industry.
The largest transactions involved the rescue of U.S. banks such as the $1.3 billion buyout of IndyMac Federal Bank by JC Flowers and Stone Point and the subsequent acquisition of Bank United for $1 billion by Blackstone Group (BX), Carlyle Group and Centerbridge.
"Public company valuations in financial services are off their lows to more realistic levels," said Eric C. Weber managing director of Freeman & Co.
"We expect private equity firms to have ample opportunities as large financial institutions accelerate the sale of non-core assets now that valuations have improved," he added.
Several buyout shops have geared up to take advantage of the disruption in the financial services sector caused by the collapse of Lehman Brothers Holdings Inc. (LEHMQ) and JPMorgan Chase Co.'s (JPM) acquisition of near-failed Bear Stearns last year.
For example, London-based CVC Capital Partners set up set up a new Financial Institutions Group specifically to target the sector and only narrowly lost out in its pursuit of Barclays PLC's (BCS) iShares business earlier this year. Other firms such as Permira have boosted their expertise in the sector with a number of appointments.
-By Marietta Cauchi, Dow Jones Newswires; +44 207 842 9241; marietta.cauchi@dowjones.com
http://www.djnewsplus.com/article/DN-CO-20090924-008579.html?mod=J1&a=T+Wire&h=Buyouts+Of+Finl+Svcs+Cos+To+Increase+On+Rising+Values+-+Study+
Copyright (c) 2009 Dow Jones & Company, Inc.
More Proof Asset Values Are INCREASING!
Coach T
With 350K pages filed and over 250 depositions only 5 were marked not "Highly Confidential" or available to the public.
Me thinks Judge Peck will find in favor of LBHI.
Coach T
So last week before the LEHMANS took off to the upside, many court documents were filed "under seal" due to Barclay's Confidentiality Agreements.
Now the Creditor's Committee has filed a motion to have the court "unredact" the filed documents. In other words, to allow the truth to be revealed to the world!
LBHI, the LBI TRUSTEE, and the CREDITORS COMMITTEE HAD TO KEEP SECRET FACTS THAT THEY FEEL THE WORLD NEEDS TO KNOW! NOW IT WANTS THOSE FACTS REVEALED!
THE CREDITOR'S COMMITTEE IS TRYING GATHER ALL ASSETS POSSIBLE!
THEY WOULD NOT BE REQUESTING IT IF THERE WAS NOT MEAT ON THE BONE!
Stay Tuned The Perfect Storm is still coming...LBHI Docket #5269.
Coach T
So last week before the LEHMANS took off to the upside, many court documents were filed "under seal" due to Barclay's Confidentiality Agreements.
Now the Creditor's Committee has filed a motion to have the court "unredact" the filed documents. In other words, to allow the truth to be revealed to the world!
LBHI, the LBI TRUSTEE, and the CREDITORS COMMITTEE HAD TO KEEP SECRET FACTS THAT THEY FEEL THE WORLD NEEDS TO KNOW! NOW IT WANTS THOSE FACTS REVEALED!
THE CREDITOR'S COMMITTEE IS TRYING GATHER ALL ASSETS POSSIBLE!
THEY WOULD NOT BE REQUESTING IT IF THERE WAS NOT MEAT ON THE BONE!
Stay Tuned The Perfect Storm is still coming...LBHI Docket #5269.
Coach T
Ok...now are you ready to start going back trhu $.28?
Enjoy the Ride...We had to shake the money tree so we can go higher long term...
Coach T
This might be the last time you see prices below $.20...IMO
If we close back above $.22+ we will have tested the 50 day flushed out weak hands and set up for the next leg up...which would start tomorrow or Monday. IMO.
Still...The Perfect Storm!
Coach T
Lehman Bros. wins $50M foreclosure judgment in Delray Beach
http://milwaukee.bizjournals.com/southflorida/stories/2009/08/03/daily78.html?q=lehman
Lehman Bros. Holdings won a $50.2 million foreclosure judgment against the developer of Whitworth Estates, which had planned to build 380 homes near Delray Beach.
Under the July 22 judgment in Palm Beach County Circuit Court, the 156-acre site along West Atlantic Avenue will be sold at public auction on Aug. 24 at 10 a.m.
It is likely that Lehman Bros. does not want to retain the property for long, since the company is operating under Chapter 11 bankruptcy and has been disposing of many of its problem assets.
Whitworth Estates OUD Acquisition bought the property for $44.4 million in 2007 and received approval for 380 homes. The developer took out a $45 million mortgage with Lehman Bros., but did not build any homes.
Lehman Bros. filed the foreclosure action in December.
LETS SEE HOW MUCH IT SELLS FOR!
Coach T
Lehman Bros. wins $50M foreclosure judgment in Delray Beach
http://milwaukee.bizjournals.com/southflorida/stories/2009/08/03/daily78.html?q=lehman
Lehman Bros. Holdings won a $50.2 million foreclosure judgment against the developer of Whitworth Estates, which had planned to build 380 homes near Delray Beach.
Under the July 22 judgment in Palm Beach County Circuit Court, the 156-acre site along West Atlantic Avenue will be sold at public auction on Aug. 24 at 10 a.m.
It is likely that Lehman Bros. does not want to retain the property for long, since the company is operating under Chapter 11 bankruptcy and has been disposing of many of its problem assets.
Whitworth Estates OUD Acquisition bought the property for $44.4 million in 2007 and received approval for 380 homes. The developer took out a $45 million mortgage with Lehman Bros., but did not build any homes.
Lehman Bros. filed the foreclosure action in December.
LETS SEE HOW MUCH IT SELLS FOR!
Coach T
If you are talking about the court decision in LEHMANS favor in the Metavante decision...that is decision is from last week.
I reported it here and expressed my thoughts that it set an important precedent that counterparties now have to negotiate with LEHMAN. It does not matter that LEHMAN filed Chap 11.
Counterparties have not fully lived terminated their positions according to standard protocol in most cases if they simply do nothing but notify intent to terminate because of the Chap 11 filing.
If counterparties have notified of their intent to terminate but have not revealed the other information required by the Master Agreements in order to complete the termination there is not a complete termination.
Counterparties have taken the position that because of the BK filing that effects a default.
METEVANTE FOUND OUT THAT IS NOT THE CASE! That is why you have seen volume pick up late last week IMO.
The next big case that has had its hearing and is being decided is the LIBRA case. This case is for 600M+! Furthermore, it sets an additional precedent.
The Perfect Storm is heading to you...are you ready?
Enjoy the Ride!
Coach T
Commercial Real-Estate Debt Rallies as Investors Snap Up Risk
Sept. 22 (Bloomberg) -- Yields on bonds backed by hotel, shopping-mall and skyscraper loans fell relative to benchmark rates as demand for risk increased and pushed prices higher.
The gap, or spread, on top-ranked securities backed by commercial-property loans has fallen about 57 basis points to 4.09 percentage points more than the benchmark swap rate during the past two weeks, according to Barclays Capital data. A basis point is 0.01 percentage point.
The rally has been more pronounced for derivatives tied to commercial real-estate debt. The prices of Markit CMBX index contracts on bonds rated BBB-, the lowest investment-grade rating, have risen about 6 points to 20.3, according to JPMorgan Chase & Co. data. The price of the contracts rises as the cost to protect the bonds from default falls.
Investors are buying commercial-mortgage backed securities amid a broader cash infusion into equity and credit markets and signs the economy is emerging from the worst economic downturn since the Great Depression. The index of U.S. economic indicators rose 0.6 percent in August, the fifth straight monthly increase, capping the longest stretch of gains since 2004, the Conference Board said yesterday.
“Prices are likely benefiting from an excess of liquidity increasingly embracing risky assets,” Chris Sullivan, who oversees $1.4 billion as chief investment officer at United Nations Federal Credit Union in New York, said in an e-mail.
The Perfect Storm...is on its way UP!
Coach T
Commercial Real-Estate Debt Rallies as Investors Snap Up Risk
Sept. 22 (Bloomberg) -- Yields on bonds backed by hotel, shopping-mall and skyscraper loans fell relative to benchmark rates as demand for risk increased and pushed prices higher.
The gap, or spread, on top-ranked securities backed by commercial-property loans has fallen about 57 basis points to 4.09 percentage points more than the benchmark swap rate during the past two weeks, according to Barclays Capital data. A basis point is 0.01 percentage point.
The rally has been more pronounced for derivatives tied to commercial real-estate debt. The prices of Markit CMBX index contracts on bonds rated BBB-, the lowest investment-grade rating, have risen about 6 points to 20.3, according to JPMorgan Chase & Co. data. The price of the contracts rises as the cost to protect the bonds from default falls.
Investors are buying commercial-mortgage backed securities amid a broader cash infusion into equity and credit markets and signs the economy is emerging from the worst economic downturn since the Great Depression. The index of U.S. economic indicators rose 0.6 percent in August, the fifth straight monthly increase, capping the longest stretch of gains since 2004, the Conference Board said yesterday.
“Prices are likely benefiting from an excess of liquidity increasingly embracing risky assets,” Chris Sullivan, who oversees $1.4 billion as chief investment officer at United Nations Federal Credit Union in New York, said in an e-mail.
The Perfect Storm...is on its way UP!
Coach T
Lone Star to Sell $239 Million of Subprime Debt (Update1)
http://www.bloomberg.com/apps/news?pid=20601087&sid=aB2x4yR2HXB4
By Sarah Mulholland and Jody Shenn
Sept. 22 (Bloomberg) -- Lone Star Funds, the Dallas-based investment firm, plans to sell $239 million of securities backed by subprime mortgages, according to three people familiar with the transaction.
The mortgages were purchased from CIT Group Inc., the New York-based lender, and have an average age of 33 months, according to a document obtained by Bloomberg News. Bank of America Merrill Lynch is underwriting the bonds.
Companies including Citigroup Inc. and American International Group Inc., both based in New York, have created securities backed by older mortgages this year. The market for so-called non-agency bonds composed of new home loans remains closed after issuance peaked at $1.2 trillion in both 2005 and 2006, according to industry newsletter Inside Mortgage Finance.
Lone Star, started by John Grayken in 1995, agreed to buy CIT’s home-lending unit for $1.5 billion in July 2008, taking on $4.4 billion of debt and other liabilities, CIT said at the time.
Sales of securities backed by new subprime loans halted in 2007, helping to curb lending to borrowers with poor credit or high debt that once accounted for about 20 percent of new mortgages. Non-agency mortgage securities lack guarantees from government-supported Fannie Mae and Freddie Mac or federal agency Ginnie Mae.
The $598.4 million of loans underlying the Lone Star sale have an average credit score of 571 out of a possible 850, and the debt exceeds the current worth of homeowners’ properties by more than 6 percent, according to the document.
Lone Star Acquisitions
During the housing slump, Lone Star has acquired a string of mortgage assets, including San Diego-based subprime lender Accredited Home Lenders Holding Co., a Bear Stearns Cos. mortgage unit, and $30.6 billion of collateralized debt obligations from Merrill Lynch & Co.
Ed Trissel, a spokesman for Lone Star, declined to comment immediately.
The securities that are being offered carry so-called credit support, or protection against losses on the underlying loans, of 60 percent, according to the document. That’s because almost $150 million of junior-ranking securities and a lower-ranking “ownership certificate” aren’t being sold.
That much protection for investors means the deal probably isn’t great for the seller, because it will provide only a small amount of cash upfront, said Glenn Schultz, a Charlotte, North Carolina-based mortgage-bond analyst at Wells Fargo & Co.
“It’s going to be a long time before the bid for mortgage credit, particularly subprime mortgage credit, recovers,” he said in a telephone interview. “That’s two times the credit enhancement you used to have.”
To contact the reporters on this story: Sarah Mulholland in New York at smulholland3@bloomberg.net; Jody Shenn in New York at jshenn@bloomberg.net
So the cycle continues toward The Perfect Storm! UP
Coach T
Today is the last day to file a claim that is not derivatives related.
Coach T
Commons are starting to get into the parabolic zone!
Weekly and Daily charts will be staring at the $3.50 gap very soon. Maybe there is news pending...like they were expecting many more claims than they received by end of day!
We shall see, enjoy the ride!
Coach T
What is it about the "gap" that caused that type of reaction?
Coach T
Congrats Rick C...That also tells me that the demand for even 1500 shares is very strong.
Coach T
Congrats Rick C...That also tells me that the demand for even 1500 shares is very strong.
Coach T
This is the article that led me to the previous post!
Monday, September 21, 2009
What Is Going on with Lehman Brothers?
Not with the company but the stock price.
Lehman Brothers still trades as a pink sheet, LEHMQ. The company has been in bankruptcy (Chapter 11) since last September. The stock, accordingly, was trading at 5 cents or less, with daily volume of a few million shares, until all of a sudden it went up 200% to 15 cents on August 28 with 73 million shares trading.
It is trading at 23 cents today, up 12%. It was up more than 20% earlier.
The move since late August is dismissed as nothing more than small, retail investors picking out the penny stocks hoping to win big to make up for the loss they have sustained in their investment.
Probably that is the case. However, I have this strange feeling that the firm may get resurrected. I have absolutely no proof, it's just my slight suspicion, probably irrational one, too.
If I am to plead my case for the Lehman resurrection, it is this recent post about two accountants discussing the unwinding of the unwindable derivative positions in Lehman Brothers London operation.
No major counterparty has come forward to settle their accounts with Lehman, after one year. Why? Maybe because their claims are not supported enough by documentation that would satisfy the bankruptcy judge? Instead of unwinding the positions so that the firm can be dissolved, might they end up keeping the firm intact with all remaining positions on its book, so that the counterparties are not harmed by the unwinding (if they owe Lehman)?
They may rather let Lehman Brothers exist as a "bad bank" that holds derivatives that have certain value but no one can figure out exactly what value and are unwindable. After all, Chapter 11 bankruptcy is for reorganization under the bankruptcy code.
http://ex-skf.blogspot.com/2009/09/what-is-going-on-with-lehman-brothers.html
Classic...Enjoy the Ride!
Coach T
This is the article that led me to the previous post!
Monday, September 21, 2009
What Is Going on with Lehman Brothers?
Not with the company but the stock price.
Lehman Brothers still trades as a pink sheet, LEHMQ. The company has been in bankruptcy (Chapter 11) since last September. The stock, accordingly, was trading at 5 cents or less, with daily volume of a few million shares, until all of a sudden it went up 200% to 15 cents on August 28 with 73 million shares trading.
It is trading at 23 cents today, up 12%. It was up more than 20% earlier.
The move since late August is dismissed as nothing more than small, retail investors picking out the penny stocks hoping to win big to make up for the loss they have sustained in their investment.
Probably that is the case. However, I have this strange feeling that the firm may get resurrected. I have absolutely no proof, it's just my slight suspicion, probably irrational one, too.
If I am to plead my case for the Lehman resurrection, it is this recent post about two accountants discussing the unwinding of the unwindable derivative positions in Lehman Brothers London operation.
No major counterparty has come forward to settle their accounts with Lehman, after one year. Why? Maybe because their claims are not supported enough by documentation that would satisfy the bankruptcy judge? Instead of unwinding the positions so that the firm can be dissolved, might they end up keeping the firm intact with all remaining positions on its book, so that the counterparties are not harmed by the unwinding (if they owe Lehman)?
They may rather let Lehman Brothers exist as a "bad bank" that holds derivatives that have certain value but no one can figure out exactly what value and are unwindable. After all, Chapter 11 bankruptcy is for reorganization under the bankruptcy code.
http://ex-skf.blogspot.com/2009/09/what-is-going-on-with-lehman-brothers.html
Classic...Enjoy the Ride!
Coach T
This is the article that led me to the previous post!
Monday, September 21, 2009
What Is Going on with Lehman Brothers?
Not with the company but the stock price.
Lehman Brothers still trades as a pink sheet, LEHMQ. The company has been in bankruptcy (Chapter 11) since last September. The stock, accordingly, was trading at 5 cents or less, with daily volume of a few million shares, until all of a sudden it went up 200% to 15 cents on August 28 with 73 million shares trading.
It is trading at 23 cents today, up 12%. It was up more than 20% earlier.
The move since late August is dismissed as nothing more than small, retail investors picking out the penny stocks hoping to win big to make up for the loss they have sustained in their investment.
Probably that is the case. However, I have this strange feeling that the firm may get resurrected. I have absolutely no proof, it's just my slight suspicion, probably irrational one, too.
If I am to plead my case for the Lehman resurrection, it is this recent post about two accountants discussing the unwinding of the unwindable derivative positions in Lehman Brothers London operation.
No major counterparty has come forward to settle their accounts with Lehman, after one year. Why? Maybe because their claims are not supported enough by documentation that would satisfy the bankruptcy judge? Instead of unwinding the positions so that the firm can be dissolved, might they end up keeping the firm intact with all remaining positions on its book, so that the counterparties are not harmed by the unwinding (if they owe Lehman)?
They may rather let Lehman Brothers exist as a "bad bank" that holds derivatives that have certain value but no one can figure out exactly what value and are unwindable. After all, Chapter 11 bankruptcy is for reorganization under the bankruptcy code.
http://ex-skf.blogspot.com/2009/09/what-is-going-on-with-lehman-brothers.html
Classic...Enjoy the Ride!
Coach T
This is the article that led me to the previous post!
Monday, September 21, 2009
What Is Going on with Lehman Brothers?
Not with the company but the stock price.
Lehman Brothers still trades as a pink sheet, LEHMQ. The company has been in bankruptcy (Chapter 11) since last September. The stock, accordingly, was trading at 5 cents or less, with daily volume of a few million shares, until all of a sudden it went up 200% to 15 cents on August 28 with 73 million shares trading.
It is trading at 23 cents today, up 12%. It was up more than 20% earlier.
The move since late August is dismissed as nothing more than small, retail investors picking out the penny stocks hoping to win big to make up for the loss they have sustained in their investment.
Probably that is the case. However, I have this strange feeling that the firm may get resurrected. I have absolutely no proof, it's just my slight suspicion, probably irrational one, too.
If I am to plead my case for the Lehman resurrection, it is this recent post about two accountants discussing the unwinding of the unwindable derivative positions in Lehman Brothers London operation.
No major counterparty has come forward to settle their accounts with Lehman, after one year. Why? Maybe because their claims are not supported enough by documentation that would satisfy the bankruptcy judge? Instead of unwinding the positions so that the firm can be dissolved, might they end up keeping the firm intact with all remaining positions on its book, so that the counterparties are not harmed by the unwinding (if they owe Lehman)?
They may rather let Lehman Brothers exist as a "bad bank" that holds derivatives that have certain value but no one can figure out exactly what value and are unwindable. After all, Chapter 11 bankruptcy is for reorganization under the bankruptcy code.
http://ex-skf.blogspot.com/2009/09/what-is-going-on-with-lehman-brothers.html
Classic...Enjoy the Ride!
Coach T
I HAVE NEVER POSTED MUST READ! THIS IS A MUST READ!
Lehman Brothers One Year After in London and Still Unraveling
On the other hand, across the Atlantic, BBC Radio aired a very interesting program featuring two accountants sent to Lehman as administrators to sort out the mess and wind down the company's London-based operation. The "mess" is an understatement; as one of the accountants say near the end, "the most complex insolvency ever."
The accountants, Tony Lomas and Steven Pearson of PriceWaterhouseCoopers, speak to Steve Evans in the program Business Daily, aired on September 10. The interview is about 18 minutes long, and you can listen to the program by clicking the link (it opens in a new window).
They tell Evans that they still have over 400 Lehman people working with them. Lehman Brothers still has enormous balance sheet of over $1 trillion, loaded with very complex assets - derivatives and structured finance products, they say.
After one year, they are still in awe how complex and comprehensive the business environment is in a large financial institution like Lehman. And how unfathomable the risk is. They say they are just starting to unravel some of the complexities of the positions with some of the bigger clients.
"Almost a year on, we still have large household-name counterparties out there who have NOT reconciled their position with Lehman. They have not worked out exactly what they think Lehman owes them, or what they owe Lehman... Because of the complexities of the relationship, they still can't finalize what their position is with us, all these months on."
"All it happened here, is the market stopped believing. Suddenly this enormous organization that's been around for 100 years fell apart. It could have been a number of other market counterparties; it happened to be Lehman but it could have been a number of others. If we end up without vote of confidence again, you could have this sort of thing again..."
http://ex-skf.blogspot.com/2009/09/lehman-brothers-one-year-after-in.html
THe Prefect Storm...now they let LEHMAN SURVIVE BECAUSE THEY CANNOT FIGURE OUT HOW TO LET IT DIE (BBC)!
Coach T
I HAVE NEVER POSTED MUST READ! THIS IS A MUST READ!
Lehman Brothers One Year After in London and Still Unraveling
On the other hand, across the Atlantic, BBC Radio aired a very interesting program featuring two accountants sent to Lehman as administrators to sort out the mess and wind down the company's London-based operation. The "mess" is an understatement; as one of the accountants say near the end, "the most complex insolvency ever."
The accountants, Tony Lomas and Steven Pearson of PriceWaterhouseCoopers, speak to Steve Evans in the program Business Daily, aired on September 10. The interview is about 18 minutes long, and you can listen to the program by clicking the link (it opens in a new window).
They tell Evans that they still have over 400 Lehman people working with them. Lehman Brothers still has enormous balance sheet of over $1 trillion, loaded with very complex assets - derivatives and structured finance products, they say.
After one year, they are still in awe how complex and comprehensive the business environment is in a large financial institution like Lehman. And how unfathomable the risk is. They say they are just starting to unravel some of the complexities of the positions with some of the bigger clients.
"Almost a year on, we still have large household-name counterparties out there who have NOT reconciled their position with Lehman. They have not worked out exactly what they think Lehman owes them, or what they owe Lehman... Because of the complexities of the relationship, they still can't finalize what their position is with us, all these months on."
"All it happened here, is the market stopped believing. Suddenly this enormous organization that's been around for 100 years fell apart. It could have been a number of other market counterparties; it happened to be Lehman but it could have been a number of others. If we end up without vote of confidence again, you could have this sort of thing again..."
http://ex-skf.blogspot.com/2009/09/lehman-brothers-one-year-after-in.html
THe Prefect Storm...now they let LEHMAN SURVIVE BECAUSE THEY CANNOT FIGURE OUT HOW TO LET IT DIE (BBC)!
Coach T
I HAVE NEVER POSTED MUST READ! THIS IS A MUST READ!
Lehman Brothers One Year After in London and Still Unraveling
On the other hand, across the Atlantic, BBC Radio aired a very interesting program featuring two accountants sent to Lehman as administrators to sort out the mess and wind down the company's London-based operation. The "mess" is an understatement; as one of the accountants say near the end, "the most complex insolvency ever."
The accountants, Tony Lomas and Steven Pearson of PriceWaterhouseCoopers, speak to Steve Evans in the program Business Daily, aired on September 10. The interview is about 18 minutes long, and you can listen to the program by clicking the link (it opens in a new window).
They tell Evans that they still have over 400 Lehman people working with them. Lehman Brothers still has enormous balance sheet of over $1 trillion, loaded with very complex assets - derivatives and structured finance products, they say.
After one year, they are still in awe how complex and comprehensive the business environment is in a large financial institution like Lehman. And how unfathomable the risk is. They say they are just starting to unravel some of the complexities of the positions with some of the bigger clients.
"Almost a year on, we still have large household-name counterparties out there who have NOT reconciled their position with Lehman. They have not worked out exactly what they think Lehman owes them, or what they owe Lehman... Because of the complexities of the relationship, they still can't finalize what their position is with us, all these months on."
"All it happened here, is the market stopped believing. Suddenly this enormous organization that's been around for 100 years fell apart. It could have been a number of other market counterparties; it happened to be Lehman but it could have been a number of others. If we end up without vote of confidence again, you could have this sort of thing again..."
http://ex-skf.blogspot.com/2009/09/lehman-brothers-one-year-after-in.html
THe Prefect Storm...now they let LEHMAN SURVIVE BECAUSE THEY CANNOT FIGURE OUT HOW TO LET IT DIE (BBC)!
Coach T
I HAVE NEVER POSTED MUST READ! THIS IS A MUST READ!
Lehman Brothers One Year After in London and Still Unraveling
On the other hand, across the Atlantic, BBC Radio aired a very interesting program featuring two accountants sent to Lehman as administrators to sort out the mess and wind down the company's London-based operation. The "mess" is an understatement; as one of the accountants say near the end, "the most complex insolvency ever."
The accountants, Tony Lomas and Steven Pearson of PriceWaterhouseCoopers, speak to Steve Evans in the program Business Daily, aired on September 10. The interview is about 18 minutes long, and you can listen to the program by clicking the link (it opens in a new window).
They tell Evans that they still have over 400 Lehman people working with them. Lehman Brothers still has enormous balance sheet of over $1 trillion, loaded with very complex assets - derivatives and structured finance products, they say.
After one year, they are still in awe how complex and comprehensive the business environment is in a large financial institution like Lehman. And how unfathomable the risk is. They say they are just starting to unravel some of the complexities of the positions with some of the bigger clients.
"Almost a year on, we still have large household-name counterparties out there who have NOT reconciled their position with Lehman. They have not worked out exactly what they think Lehman owes them, or what they owe Lehman... Because of the complexities of the relationship, they still can't finalize what their position is with us, all these months on."
"All it happened here, is the market stopped believing. Suddenly this enormous organization that's been around for 100 years fell apart. It could have been a number of other market counterparties; it happened to be Lehman but it could have been a number of others. If we end up without vote of confidence again, you could have this sort of thing again..."
http://ex-skf.blogspot.com/2009/09/lehman-brothers-one-year-after-in.html
THe Prefect Storm...now they let LEHMAN SURVIVE BECAUSE THEY CANNOT FIGURE OUT HOW TO LET IT DIE (BBC)!
Coach T
To the rescue...cavalry.