Any posts are my opinion, and should not be relied on for your investment decisions.
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Disregard old YMB note...seems to be back up, as always full of mostly strange messages.
Just checked the old LEHMQ YMB...getting an error coming back from yahoo. May have closed the old common board.
Best JW
Obligor = debtor = LBHI (likely via the DTCC) has to furnish the list of owners to the indentured trustee.
Definition of 'Obligor'
A person or entity who is legally, or contractually, obliged to provide some benefit or payment to another. In the financial context, the term obligor refers to a bond issuer, who is contractually bound to make all principal repayments and interest payments on outstanding debt. The recipient of the benefit or payment is known as the obligee.
Researching the Trust Indenture act of 1939 - that these TRuPs must comply with.
It appears that under section 312, the indentured trustee has to furnish a complete list of security holders so that we may communicate with each other. Has to be three security holders that have owned for 6 months +
LINK
http://ftp.sec.gov/about/laws/tia39.pdf
From section 312-
BONDHOLDERS LISTS
SEC. 312. (a) Each obligor upon the indenture securities shall
furnish or cause to be furnished to the institutional trustee thereunder at stated intervals of not more than six months, and at such other times as such trustee may request in writing, all information in the possession or control of such obligor, or of any of its paying agents, as to the names and addresses of the indenture security holders, and requiring such trustee to preserve, in as current a form as is reasonably practicable, all such information so furnished to it or received by it in the capacity of paying agent.
(b) Within five business days after the receipt by the institu
tional trustee of a written application by any three or more indenture security holders stating that the applicants desire to communicate with other indenture security holders with respect to their rights under such indenture or under the indenture securities, and accompanied by a copy of the form of proxy or other communication which such applicants propose to transmit, and by reasonable proof that each such applicant has owned an indenture security for a period of at least six months preceding the date of such application,
such institutional trustee shall, at its election, either—
(1) afford to such applicants access to all information so
furnished to or received by such trustee; or
(2) inform such applicants as to the approximate number
of indenture security holders according to the most recent in
formation so furnished to or received by such trustee, and as
to the approximate cost of mailing to such indenture security
holders the form of proxy or other communication, if any, speci
fied in such application.
If such trustee shall elect not to afford to such applicants access to such information, such trustee shall, upon the written request of such applicants, mail to all such indenture security holders copies of the form of proxy or other communication which is specified in such request, with reasonable promptness after a tender to such trustee of the material to be mailed and of payment, or provision for the payment, of the reasonable expenses of such mailing, unless within five days after such tender, such trustee shall mail to such applicants, and file with the Commission together with a copy of the material to be mailed, a written statement to the effect that,
in the opinion of such trustee, such mailing would be contrary to
the best interests of the indenture security holders or would be in violation of applicable law. Such written statement shall specify the basis of such opinion. After opportunity for hearing upon the objections specified in the written statement so filed, the Comm...
Thx Taint. Sorry should have read ICBAs member banks joined any lawsuits. From what I've read, I saw mostly hedge funds, mutual funds and pension funds listed.
I keep wondering why these ICBA member banks have not taken legal action. They took substantial losses on these GSE securities they were encouraged to buy and hold as tier 1 by regulators.
Without them, the 2005 and later GSE pref offerings would likely have been under-subscribed.
Has the ICBA joined in any of the lawsuits?
They still have the GSE prefs as a priority for 2013
http://www.icba.org/advocacy/index.cfm?ItemNumber=57559&sn.ItemNumber=1709
JW
Stock,
With the low vol on these prefs combined with all the headline litigation about to start...I am expecting larger daily/weekly price swings.
Holding..if I get a chance to sell some higher priced 50s to pick up lower priced 50s I will take advantage.
Best JW
Jr pref holders better off with two Attorneys heading FHFA (Watt- JD) and TSY (LEW-JD) vs TSY (Geitner- MA Econ) and FHFA (Demarco- PhD Econ)?
I don't know if the two attorneys heading TSY and FHFA understand the true systemic scale of US macro econ risk in getting rid of the GSEs.
I'm thinking...they are likely to follow the law. Also, trying to prepare mentally for all the litigation headline/price swings that will likely ensue.
Holding for now. Thoughts anyone?
Best JW
LD, have you visited motown? Spent 9yrs working in detroit. Be very careful...very high crime rate, unemployment (i saw lots of gun and knife play in those years). If the city is unable to re-negotiate its debt property taxes will likely have to rise.
Fyi-google detroit pd response times.
What area of detroit? I'm out in S CA now.
While we wait. Sharing law article regarding TruPS -
http://www.natlawreview.com/article/section-363-sales-increasingly-viable-tool-bank-mergers-acquisitions
re: bloomberg and the venue change
Scottrade did not know anything additional when I talked with them. They did offer to research further and will call me with anything additional (I'm doubtful I'll hear anything back). Scottrade was also slow on the relist in 2012.
Best JW
They all voted to accept the POR, classes 10A and below were not allowed to vote and deemed to reject.
I checked with scottrade corporate and they are showing no call dates issued - FWIW.
GLTA
JW
Quite a comprehensive hearing coming up on 8/28...see docket 39416 (just posted late yesterday)
Link-
http://dm.epiq11.com/LBH/Docket#Debtors=1906&RelatedDocketId=&ds=true&maxPerPage=25&page=1
From docket 39416, exhibit A (matters to be heard):
Exhibit A
1. Debtors’ One Hundred Thirty-Eighth Omnibus Objection to Claims (No Liability
Derivatives Claims) [ECF No. 16865]
2. Two Hundred Ninety-First Omnibus Objection to Claims (No Liability Derivatives
Claims) [ECF No. 27380]
3. Four Hundred Eighteenth Omnibus Objection to Claims (No Liability Claims) [ECF No.
38010]
4. Four Hundred Twenty-First Omnibus Objection to Claims (No Liability Derivatives
Claims) [ECF No. 38018]
5. Four Hundred Twenty-Third Omnibus Objection to Claims (Reduce and Allow Claims)
[ECF No. 38949]
6. Four Hundred Twenty-Fourth Omnibus Objection to Claims (No Liability Claims) [ECF
No. 38950]
7. Four Hundred Twenty-Fifth Omnibus Objection to Claims (Insufficient Documentation
Claims) [ECF No. 38951]
8. Four Hundred Twenty-Sixth Omnibus Objection to Claims (No Liability Derivatives
Claims) [ECF No. 38952]
9. Four Hundred Twenty-Eighth Omnibus Objection to Claims (Subordinated Guarantee
Claims) [ECF No. 38967]
10. Plan Administrator's Omnibus Objection to Claims Filed by Deborah E. Focht [ECF No.
34303]
11. Merits Hearing with Respect to Proof of Claim No. 57069 [ECF No. 36781]
12. Plan Administrator's Objection to Claims of U.S. Bank, National Association [ECF No.
FWIW...keeping an eye on notices from the DTC on LEHKQ
Nothing so far, just the actions in 2012 (link below)
http://search2.dtcc.com/?q=lehkq&x=18&y=10&sp_p=all&sp_f=ISO-8859-1
Here ya go guster...this ones for sale
http://www.privateislandsonline.com/islands/granot-loma-lodge-and-island
Plenty of fresh water.
Granot Loma is a National Historic Landmark begun by Louis and Marie Kaufman in 1919, restored to its former grandeur in 1987 by Tom Baldwin. Its heritage is the rich legacy of powerful men who control and influence people and events. Gerald Ford intended to transform Granot Loma into his Western White House. Louis Graveraet Kaufman finalized plans for the Empire State building and creation of General Motors in its Great Room. Muhammad Ali attempted to buy it in the early 70's. And Tom Baldwin runs a financial empire from it today.
48,000,000 CTs outstanding.
Only 146,774 CTs traded today (buyers & sellers) at .56 cents.
Only .3% O/S LOL!
Likely that the IHUB folks have few/several million CTs…who is hanging onto the other 40+ million and unwilling to sell at .56?
GLTA
JW
Check out the docket action...Goldman transferring millions in claims to a Cayman holding co.
http://dm.epiq11.com/LBH/Docket#Debtors=1906&RelatedDocketId=&ds=true&maxPerPage=25&page=1
Thx Viva.
We're one of the European subsidiaries due to make a distribution on their prefs?
Here is why I ask...from the LEHKQ prospectus:
During any deferral period, neither Holdings or any of its subsidiaries will be permitted to:
•pay a dividend or make any other payment or distribution on Holdings' capital stock;
•redeem, purchase or make a liquidation payment on any of Holdings' capital stock;
•make an interest, principal or premium payment, or repay, repurchase or redeem, any of Holdings' debt securities that rank equal with or junior to the subordinated debentures; or
•make any guarantee payment with respect to any guarantee by Holdings of debt securities of any of its subsidiaries, if the guarantee ranks equal to or junior to the subordinated debentures.
Linda see post 27502...some current LAMCO managers. Additionally we know LAMCO is handling much of the derivatives monetization work that has not been completed.
The CTs also rank equal to other outstanding prefs.and we have seen the euro version reclassified into equity.
Camaro, where are you seeing these call dates on the L and Ms?
Thx JW
FWIW...3/15/08 was a Saturday
Thx for sharing. Strange note...the K's were callable on 3/15/2008. Did you call them to clarify?
Treasury is likely looking for every last cent to cover US payments beyond Labor day. Possibly Freddie trying to negotiate equitable PSPA terms with Treasury to release the DTAs.
http://www.cbsnews.com/8301-250_162-57583936/u.s-wont-hit-debt-ceiling-until-at-least-labor-day-says-treasury-secretary/
Just sharing my thoughts.
Holding and may add lower
Best JW
FV for this preferred is $105, 000.
Some background on the change of venue process for the OTC...
Market maker starts the process, timing can vary.
http://www.querycat.com/question/0407fcba332bb005b6e234fc0478314f
http://www.otcbb.com/aboutOTCBB/howtoquote.stm#aboutregistering
Best
JW
Signed. Thx Demar
JW
While its quiet...refresher on LAMCO from past Bloomberg article
I like Judge Pecks quote, "Is this just to prime the pump of Lamco?"
http://www.bloomberg.com/news/2010-04-15/lehman-seeks-to-spin-off-asset-manager-deflecting-creditors-objections.html
Here's what happens to pre-2008 LEH leadership...big promotions at Barclays.
http://www.bloomberg.com/news/2013-07-17/barclays-hands-u-s-reins-to-mcgee-after-vowing-change.html?cmpid=yhoo
Skip does have "an appetite for blockbuster deals and the risks that make them happen, a noteworthy choice"
Sure he helped run LEH into the ground and then bought its US units at firesale prices when he moved to Barclays. Sounds like the ethical benchmark for most big boy bankers.
Interesting find that many LAMCO LLC Sr. Managers are from Barclays
Examples from linkedin public profiles...
http://www.linkedin.com/pub/matthew-foley/a/559/421?trk=pub-pbmap
http://www.linkedin.com/in/johncshaughnessyjr?trk=pub-pbmap
http://www.linkedin.com/pub/thomas-rogers/a/588/896?trk=pub-pbmap
This one is not Barclays (sharing his current role in LAMCO)...
http://www.linkedin.com/pub/savvas-mavridis/4/b8b/211?trk=pub-pbmap
RE: Do you guys think a 4th amendment that has the equal or better terms than the 1st and 2nd will make the lawsuits - moot?
I've always believed a 4th amendment could make most of the lawsuits moot. The damages suit for the conservatorship action is a separate issue (may continue on, litigation for very long-time and they would mostly be suing TSY, FHFA, maybe GSEs (it would be a stretch to sue GSEs for the conservatorship action).
FHFA and TSY will act as needed (speed of repayment and within legal contract terms). They are autonomous from the whims of individuals in congress and their past actions have shown they will not bend to all political pressure. Look at Demarco's record on many issues that were not politically popular (ex: principle forgiveness). FHFA and TSY only seek advice as needed from the Senate, but do not have to follow it.
I think a fourth PSPA was always planned for the net zero event. A part of the 4th PSPA will be jr. pref divi restoral/maybe blended with tender offers. Each PSPA amendment has been less punitive as the two GSEs have strengthened. The last one recognized that continued support may be needed (large macro event scenarios) but also recognized the two GSEs can pay faster.
Individual Senators and Congressmen/women can spout off all they want in the media, but US TSY is largely autonomous. Their goal is to make sure taxpayer gets paid first along with not violating the constitution.
I do like the shot across the bow (ex solicitor gen. Olsen's filed suit) to make sure TSY stays the course...
The Solicitor General, who has offices in the Supreme Court Building as well as the Department of Justice Headquarters, has been called the "tenth justice"[7] as a result of the relationship of mutual respect that inevitably develops between the justices and the Solicitor General (and their respective staffs of clerks and deputies). As the most frequent advocate before the Court, the Office of the Solicitor General generally argues dozens of times each term. As a result, the Solicitor General tends to remain particularly comfortable during oral arguments that other advocates would find intimidating. Furthermore, when the office of the Solicitor General endorses a petition for certiorari, review is frequently granted, which is remarkable given that only 75–125 of the over 7,500 petitions submitted each term are granted review by the Court.[8]
The bike will be a great way to get your $$$$$ into panama tax free
Painful to watch the volitility, but so far the vol. on prefs not showing much conviction.
Some examples
Today Avg vol
FNMAS 1.6M 3.4M
FMCKJ 2.5M 3.8M
FMCKM 2.3K .6M
From the Esquire article -
"And so, when the $7 billion went missing, perhaps it was inevitable that Bob Diamond's winning streak would continue. It was shocking to Barclays executives that the Fed wasn't able to just make JPMorgan give it back — wasn't able to convince JPMorgan to right such an obvious wrong. But when the Fed forensically reconstructed the trade and both sides were called upon to settle, Barclays got satisfaction: $1.3 billion in cash and $5.7 billion in securities."
Looks like this was settled and $7B is not still on deposit w/JPM.
Stock, do you have a link to the Esquire article?
Just checked quantumonline
Thrse are existing barclays (bcs) pref shares
Barclays Bank PLC BCSPR NYE Equity Barclays Bank PLC BCSPRA NYE Equity Barclays Bank PLC BCSPRC NYE Equity Barclays Bank PLC BCSPRD NYE Equity
http://quantumonline.com/ParentCoSearch.cfm?tickersymbol=BCS
I've always thought like your cousin Lenny...ultimately a tender offer in the 40-50% range. I do not think the FV 50s will ever approach that price again ($50/sh), but I'd love to be wrong.
This writer has some good insight and good dissection. Suspect he is long GSEs (no confirmation).
http://www.lawrencegmcdonald.com/housing-market-fannie-mae
I am here for the financial gain that most importantly happens to support the systemic recovery of the American economy. We need to leverage our reserve currency status while every other developed economy is struggling. GSEs are part of that conduit. This is so logical, but I fear our congress has been trained on methods to bend logic (kid who wants to be hs/middle sch class prez, so they promise free desserts every day at lunch).
still holding
best jw