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How can the CTs have a guaranteed redemption value and yet have their value tied to the debentures in the Plan Trust at the same time? That seems contradictory, and solving the contradiction could prove key.
Alan, I don't think you're supposed to reveal your true identity on these forums. You might want to delete that.
Hadley W. Throckmorton
Apparently the Q is for companies in bankruptcy, and the CTs are Lehman-issued securities, whether they're part of the BK or not IMHO. What worries me is: if the value of the CTs is dependent on the debentures they're linked to, and those debentures ARE part of the bk - as JSHuey pointed out - then exactly what do the guarantees apply to? How can they guarantee something that doesn't have innate value in itself? This would appear to be the $64,000 question (more like 64,000,000 today)!
What REALLY smucks now is that now, because of the reporting requirements to the IRS, most European banks won't take Americans as customers. I've even seen a separate question on the application forms: Are you an American citizen? If you check yes, you get a screen terminating the application process right then and there. And the broker I had already had an account with here for years simply terminated it and started selling off the positions without asking me. I managed to get them to transfer the most valuable ones to my U.S. account before they sold them. It makes it MUCH harder for Americans to live abroad.
True, but not entirely true! I'm an expat living in Germany, and we expats are NOT taxed on what we make abroad. We do have to file, yes (plus a report of foreign bank accounts), but the first $90,000 or so are exempt. After that, you would only have to pay the difference, if the tax you paid in the foreign country were lower than it would have been in the U.S. (which, in Germany, ain't gonna happen!)
By the way, what ever happened to Troy? He's another expat member of the forum living in Germany.
In Germany, they've got a 25% "transaction tax" on every sale of securities, and it goes up to 50%, if you sell within a year. That's to discourage day-trading - or any kind of flipping, at all! To answer your question (rhetorical as it was) 'Why not 40 or 60%?': because they wouldn't want to trigger a flight of investment capital into overseas markets, that's why not. 25% (the same all across Europe) is the ceiling for that.
Another possible scenario?
"The big question is whether banks will look to replace those securities with other forms of hybrid capital -- perpetual preferreds -- that will count as equity by global regulators in coming years, and which may carry lower yields.
As trust preferred securities face an upcoming redemption schedule, some banks are replacing them with newly issued perpetual preferred securities - allowed in new regulatory regimes to count for roughly 1.5% of overall Tier 1 common capital - in refinancing's that may push down borrowing costs and increase interest-based earnings."
And the article I got this from:
http://www.thestreet.com/story/11671176/1/banks-looking-for-some-perpetual-growth-street-whispers.html
Just wanted to run this up the flagpole and see who salutes it.
No, I only determined that none of the CTs were on the list.
That's exactly what I said in my post that no one replied to! If Lehman - and it IS Lehman who's auctioning off the securities - offered them up for sale knowing full well that they would be worthless, they would be exposing themselves to an unwinnable class action suit for breach of good faith. Therefore I see this as an indirect confirmation that the unsecured debt behind our CTs will be made whole, which would have to happen before any of the preferreds see a single cent. Anyone else see it that way?
These all appear to be the OBS shares (no CTs). So doesn't this part: "Securities will have reserve prices set at the discretion of the Trustee and Miller Buckfire/ Stifel."
tend to imply that we're in the money? It's like saying, "We (the trustee) think the regular preferreds are going to end up being worth about this much, or more - or maybe nothing at all (not!)" - which would imply that, for the waterfall to reach this far, the CTs will have been paid off.
Or am I reading this wrong?
Hey, where did you find that picture of my little sister???
Coblin's new "venture" (apparently probation wasn't enough!)
Thank you for Considering All Around Inspections for your inspection needs. We specialize in Wind Mitigation, 4pt. Inspections and Roof Certifications. We take pride in offering the very best customer service and professionalism in the industry. We treat every client like a member of our own family. We not only can help protect your investment, our specialized services can lead to substantial savings for homeowners. Call us now to discuss your individual inspection needs. Phone : 888-715-1114. We look forward to speaking with you.
We are located in Boca Raton, FL and serve all of South Florida.
About:
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(Ryan, you misspelled "truly" - the very least of the ironies about this statement!)
I, for one, am not too concerned about it. The POR is set in stone. They can't go jacking it up without Judge Peck's approval, and in that case, we'd find out about it. That tells me that the reporter got his/her facts wrong, which in turn discredits all the other info, as well, including the pay-off on Thursday. For all we know, writer might've read that LBHI had announced they would pay so and so much on that date and just assumed that they had now done so - without actually checking to make sure they had!
All too often, that's how financial-pages journalism works.
Something to pass the time:
http://www.thestreet.com/story/12036788/1/the-deal-too-big-to-merge.html
"$15 billion, when they lose the ability to grandfather trust preferred securities as Tier 1 Capital;..."
Thanks for that. What I didn't like is that the interviewer didn't let Miller answer all those questions he was heaping on the guy. (I'm in the business and see these things with a critical eye.) The central question was about justifying the lawyers' fees, and Miller never got a chance to answer it.
My share count:
LEHKQ: 20706
LEHLQ: 11000
LHHMQ: 1980
LEHNQ: 8300
By the way, if the CTs are not in the BK, seems like they shouldn't have those Qs on the end. Or does that just signify that the issuing company is in BK, whether the securities themselves are, not not?
Friedl: Willkommen ins Forum! Bist nicht der einzige 'Kraut' hier.
"Anyone gets a little rabbit in his blood, pulls the trigger 'fore the POR, let 'em eat dirt!"
Holden MaGroin?? Are you by any chance acquainted with or related to June McGumm?
I'm holding tight as a rusty bolt with a W-40 allergy.
So now you can throw yourself on foot into ten lanes (approximately 10 - always approximately!) of swiftly moving traffic and emerge unscathed on the other side without batting an eye?
"POR" stands for "piece of the rock".
(Just kidding - it stands for "plan of reorganization")
I didn't have any trouble at all. 10,000 of the shares bought today went to me. Had a GTC order out for 11,000 since last week, 1000 got filled the moment I put it in, and the rest today in three tranches: 1 x 5000 and 2 x 2500. Still got a GTC out for another CT, but it's not getting filled.
GLTA!!!
Only if you're in absolutely 100-% total denial of global warming. Me, I'm heading for Iceland. A friend already has property in Greenland and is loving it.
Back on topic: as I understand it, the back divvies can't be reallocated to higher classes?
Thanks, I figured that's what I'd have to do. I tried 5-cent increments downward till the order took, but now the limit's way too low.
About a third of those Ks were mine. I'm trying to get ahold of some Ls, too, but Ameritrade won't let me place the order with a limit any higher than 0.16, and that's too low. It wants me to confirm that I want to set the limit higher but doesn't give me any possibility to do so - at least not on the web page.
Seems to me as if the key here is the definition of "not part of the bankruptcy" as regards the CTs. Does that mean we're in or out of the waterfall?
Who actually has our CTs now? LBHI? And if they are not part of the BK, does that mean LBHI has them, but they're simply not included in the bankruptcy assets? Is that even possible? If money for the CTs is being reallocated, wouldn't that pretty much confirm that LBHI does indeed still have them (i. e. the trustee) and they ARE a part of the BK assets? And if they're not part of the BK, wouldn't that indicate that someone else has them? The non-payment of divvies can only mean one of two scenarios: either the CTs are in the BK and fall under the automatic stay, in which case LBHI has them, or it means, someone else has them, and that someone has implemented the 20-quarter deferral, which means nothing ever got reallocated, and we're owed RV plus divvies and interest. If the 20 quarters pass, and nothing happens, we'll know that several sources did not tell us the truth about the CTs not being part of the BK – for whatever reason. And if they are tied up in litigation, and the judge decides someone else has them, we're still owed RV, divvies and interest - right???
Or am I totally off base on this?
One thing I'm not clear on: if the CTs are technically not part of the BK - and it appears that they aren't - wouldn't the reallocation clause be irrelevant to us? It wouldn't apply to us, would it? Or is that just the junior subordinated debt we're associated with? Do we have a documented instance of our money going to higher classes?
Before anyone sends off this e-mail again, please correct in line 3 "are in the mist of a lawsuit" to read "are in the midst of a lawsuit". (Being a copy editor is part of my job).
Also, I wish to add my voice to all the expressions of thanks going to the heavy-duty DDers on the board! You work miracles!
All chart analysis on the Gray Market is (almost) null and void! It isn't subject to the same rules, the playing field ISN'T level, and even if it were, the volume's just too anemic.
The only indicator that'll have some small meaning is the long-term EMA. This is the only stock I have bought (or would buy) based on fundamentals - NOT technicals.
Wamugold, with this kind of volume, totally random bid/ask spreads and MM-anarchy on the gray market to boot, chart analysis means absolutely nada!
It's only back at .12, because they ended the day on a sell, not a buy. With this one, you'd have better luck basing your trading decisions on the weather report. (BTW, any chance you could get that caps lock button fixed?)
HEY! I'm from Kansas, and I'll have you know, it has nothing to do with realistic or rational thinking!
Thanks. I own some Ks and 11,000 Js, but no commons. What made me invest? I work for German TV and know a bit about technical chart analysis. We did a report on the Lehman bust on its 1-year anniversary. Well, German journalists hardly ever know what they're talking about when they write about charts, so I double checked, realized the pps was about to blow, and plowed all the spare cash I had into it. Next day it blew. I made a killing - more than I made producing the report - and put half the profits back into the Js.
That's what got me interested - that and MicMac's cheerleaders.
Yeah, I'm one of the lurkers. Back a couple of weeks ago when there was a sudden spurt of buying activity, and everybody was wondering why, part of it was me grabbing 8300 LEHNQ for .12.
I read every single post, but you guys are way out of my league. I've learned a hell of a lot from you and could never thank you enough!
Vianna, you can add my paltry 2,900,000 to that list of longs. I wish I had a hundred times as many, but c'est la guerre.
Sorry - I meant FIVE trillion. Oh, well, a trillion here, a trillion there - peanuts! (Especially when you never intend to issue them.)
Actually, I believe Fortress merely authorized 3 trillion shares - they never really issued them - which of course would've (and obviously DID) lead shorty to believe FFGO was planning to dilute their own stock into oblivion, like so many other sub-penny scams, so it was a "safe bet".
This fact alone ought to make it clear how well and how deliberately Fortress set shorty up.
Heard back from the corporate fraud lawyer. I can't reproduce the letter here for reasons of confidentiality, but the gist of it is that he's researched the case and says it's "abundantly clear" we are victims of fraud. However, he said the co. has a negative worth, and that pursuing an individual's assets is a long and difficult process. So he won't take it on.
I'm not ready to give up on this, though.
I intend to look for a lawyer who's willing to go after Coblin. The case is clear-cut! Anyone with me?
This after-hours price has appeared numerous times over the past months. It's something technical - doesn't seem to mean a thing.
Welcome as new admin, by the way! I've always looked for your posts.
Just FYI: I tried to get a corporate fraud lawyer on this a few weeks ago, but he won't touch the case. Even told him we could get a class-action going. No apparent interest.
Thank you. Dankeschön! Now I've just got to figure out where the line runs between the company's obligations to respresent itself truthfully in whatever disclosures it chooses to make and our obligations to ourselves to perform due diligence - in other words, what legal rights we have, if any.