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MARCH 10, 2010.
Barclays on the Hunt for a U.S. Retail Bank
http://online.wsj.com/article/SB10001424052748704145904575111622338684014.html?mod=googlenews_wsj
By SARA SCHAEFER MUñOZ And DAVID ENRICH
LONDON—After buying up Lehman Brothers Holdings Inc.'s North American operations at the peak of the financial crisis, British bank Barclays PLC is on the prowl for another major acquisition in the U.S., according to people close to the matter.
Barclays is hunting for a retail bank at a good price that would give it more deposits and build on the presence of Barclays Capital in the U.S., these people said. The bank, in response to potential changes in banking regulation, has designated an internal team to assess possible targets, these people said. Barclays is focused only on reconnaissance right now, and no deal is imminent, they said.
The bank is also reviewing additional retail acquisitions in Western Europe, they said, which would add to recent purchases such as Citigroup Inc.'s credit-card portfolios in Portugal and Italy.
The move by Barclays to find more deposits underscores how the banking regulatory debate is driving strategic choices. Global and national rules are likely to toughen capital requirements and place a premium on deposits to strengthen liquidity, or funding, at banks.
Earlier this year, the Obama administration proposed a levy on banks based on their holdings of liabilities other than deposits. The aim of the proposal, whose fate in Washington is uncertain, is to discourage banks from relying on so-called wholesale funding, such as bonds, as a primary source of liquidity. Instead, banks would have an incentive to stock up on plain-vanilla deposits, which tend to be more stable sources of funding and wouldn't be taxed under the proposal.
Meanwhile, new rules being worked out by international regulators as part of the Basel 3 framework would require banks to reduce their reliance on short-term funding as a percentage of their assets.
A Credit Suisse report said Tuesday that Barclays's growth prospects could be limited if it didn't acquire more deposits. Other U.K. banks, the report said, will probably need to shed assets in order to meet the new rules.
Barclays sees a window of opportunity to expand its business, after weathering the financial crisis better than many of its rivals. It is particularly interested in promoting its brand in the U.S. and is playing host to a ground-breaking ceremony this week for Barclays Center, a basketball arena in the Brooklyn borough of New York City.
Barclays officials believe any future growth in their loan and securities portfolios will have to be funded by corresponding growth in their retail-deposit base, said a person familiar with the matter. The bank has also said it is interested in expanding its private-wealth business.
President Robert E. Diamond Jr. is leading an assessment of possible targets in wealth management, while Barclays Chief Executive John Varley is working to size up potential retail and commercial opportunities, according to another person familiar with the matter.
Acquisition targets would seem to be plentiful, with roughly 8,000 banks in the U.S. But the majority are tiny, and few are large and healthy enough to likely attract attention from a giant institution such as Barclays. Already, a number of sizable banks have been snapped up in the past two years via government-induced takeovers, leaving a limited pool of candidates.
Barclays officials aren't trying to get a foothold in a specific geographic market. Instead, they are more interested in acquiring a franchise with a strong branch network and deposit base, according to people familiar with the matter.
Among the large regional lenders that analysts have said could be targets for large U.S. or overseas banks are SunTrust Banks Inc., an Atlanta-based lender with $120 billion of deposits and 1,700 branches across the southeastern U.S.; Fifth Third Bancorp of Cincinnati, which has about 1,400 branches and $82 billion in deposits; and Comerica Inc., a Dallas-based bank that has more than 400 branches and about $39 billion in deposits, according to the Federal Deposit Insurance Corp.
SunTrust has a corporate and investment-banking division, as well as a middle-market commercial-lending business, while Comerica is a big player in middle-market and small-business lending. That could add to either companies' attractiveness to Barclays, given its existing investment-banking business in the U.S.
But there is no indication those companies are for sale or have talked with Barclays. Representatives for SunTrust and Fifth Third declined to comment. Comerica didn't respond to a request for comment. A spokesman for Barclays's retail bank declined to comment on what he called "speculation."
Read More
Deal Journal: Which U.S. Bank Might Barclays Buy?
Earlier: Barclays Profit Doubles
.Increasing interest in the U.S. represents a shift in the bank's retail strategy following the departure of Frederik "Frits" Seegers in November, who spearheaded a rapid expansion into emerging markets such as India and the United Arab Emirates in his role as head of the bank's global retail and commercial-banking division.
Mr. Seegers left in an organizational shake-up in which the corporate bank was moved under the control of Mr. Diamond, who oversees Barclays investment-banking and management divisions. The bank then created a new division, global retail banking, headed by former Barclaycard Chief Executive Antony Jenkins.
Mr. Jenkins, known for his prudent management of lending risk when he headed Barclaycard, has been charged with creating a "critical mass" in markets where Barclays has a significant presence, Mr. Varley said during the bank's annual results presentation in February.
"I acknowledge that we have been too aggressive in our approach to business expansion in certain emerging markets," he said.
The emerging-markets retail business posted a pretax loss of £254 million ($382.6 million), weighed down by problem loans, while operating expenses rose.
Barclays's overall net profit was £9.39 billion for 2009, up from a net of £4.38 billion a year earlier, reflecting a £6.33 billion gain from the sale of about 80% of its Barclays Global Investors and a boost from the Lehman businesses it acquired.
Write to Sara Schaefer Muñoz at Sara.Schaefer-Muñoz@wsj.com and David Enrich at david.enrich@wsj.com
STRANGER THINGS HAVE HAPPENED!
I don't think it would take $34 million dollars and 2,200 pages of report to tell us that no one has a hand in taking Lehman down.
There will be information that will set additional legal wheels in motion to gain control over more assets/damages...IMO.
I agree. Tell us is in the report we do not need the back up data. We will give that to the authorities to hand out jail time!
Looks like a Storm coming in...the Perfect Storm!
7473 3/9/2010 Letter / Report to Court on Status of Examiners Efforts to Reach Agreement on Confidentiality Issues Impacting the Publication of the Examiners Report (related document(s)[7026]) filed by Patrick J. Trostle on behalf of Anton R. Valukas. (Trostle, Patrick)
Debtor: Lehman Brothers Holdings Inc.
Related: 7026
7473 3/9/2010 Letter / Report to Court on Status of Examiners Efforts to Reach Agreement on Confidentiality Issues Impacting the Publication of the Examiners Report (related document(s)[7026]) filed by Patrick J. Trostle on behalf of Anton R. Valukas. (Trostle, Patrick)
Debtor: Lehman Brothers Holdings Inc.
Related: 7026
LETTER FROM THE EXAMINER TO THE COURT RELEASING REPORT ON THURSDAY...FYI.
Robert L. Byman
rbyman@jenner.com
March 9, 2010
Jenner & Block LLP
353 N. Clark Street
Chicago, IL 60654
Tel 312 222-9350
www.jenner.com
Via Hand Delivery
Honorable James M. Peck
United States Bankruptcy Court
Southern District of New York
One Bowling Green
Room 601
New York, NY 10004-1408
Re: Lehman Brothers’ Bankruptcy Examination, Case No. 08-13555
Dear Judge Peck:
As we contemplated in the Examiner’s Motion to Establish Procedures to Unseal the
Examiner’s Report, due to be presented to you on March 11, 2010, this letter is designed
to supplement the Motion by advising you of the status of our efforts to reach
agreement on confidentiality issues that impact the publication of the Report.
The deadline for objections to the Examiner’s Motion was 4:00 pm March 4, 2010. No
substantive objections were filed, but certain parties have filed responses reserving
rights and proposing alternate procedures for determining whether and to what extent
materials in and supporting the Report may be kept confidential.
The Report as filed under seal with the Court has citations and references to 3158
documents. In addition to the specifically cited documents, the Report uses data
extracted from certain Barclays’ data banks. As of the transmission of this letter, we
have resolved confidentiality issues as to all but 5 documents.
The five documents remaining at issue, consisting of seven pages, were produced by
the CME Group; those documents impact only a few pages of the 2200 page Report.
In a number of cases, we have resolved confidentiality issues by agreeing to redactions
in the underlying documents and the description of those documents in the Report, to
Hon. James M. Peck
March 9, 2010
Page -2-
eliminate disclosure of sensitive personal or proprietary information where the
Examiner has determined that information has no relevance to his Report. Although
the redactions are limited, they do alter the Report as currently filed under seal, so the
Examiner will seek leave to withdraw the Report as filed and substitute a final Report,
which we plan to have available Thursday when we appear before you.
The pleadings filed Thursday by certain parties raise and reserve issues about the right
of other parties to question the redactions that the Examiner has agreed to. The
Examiner takes no position on those issues other than to state his belief that the
resolution of those concerns should not delay the publication of the Report and its
supporting materials.
We look forward to seeing your Honor on March 11, 2010.
Sincerely,
Robert L. Byman
cc: Counsel of record and other interested parties
LETTER FROM THE EXAMINER TO THE COURT RELEASING REPORT ON THURSDAY...FYI.
Robert L. Byman
rbyman@jenner.com
March 9, 2010
Jenner & Block LLP
353 N. Clark Street
Chicago, IL 60654
Tel 312 222-9350
www.jenner.com
Via Hand Delivery
Honorable James M. Peck
United States Bankruptcy Court
Southern District of New York
One Bowling Green
Room 601
New York, NY 10004-1408
Re: Lehman Brothers’ Bankruptcy Examination, Case No. 08-13555
Dear Judge Peck:
As we contemplated in the Examiner’s Motion to Establish Procedures to Unseal the
Examiner’s Report, due to be presented to you on March 11, 2010, this letter is designed
to supplement the Motion by advising you of the status of our efforts to reach
agreement on confidentiality issues that impact the publication of the Report.
The deadline for objections to the Examiner’s Motion was 4:00 pm March 4, 2010. No
substantive objections were filed, but certain parties have filed responses reserving
rights and proposing alternate procedures for determining whether and to what extent
materials in and supporting the Report may be kept confidential.
The Report as filed under seal with the Court has citations and references to 3158
documents. In addition to the specifically cited documents, the Report uses data
extracted from certain Barclays’ data banks. As of the transmission of this letter, we
have resolved confidentiality issues as to all but 5 documents.
The five documents remaining at issue, consisting of seven pages, were produced by
the CME Group; those documents impact only a few pages of the 2200 page Report.
In a number of cases, we have resolved confidentiality issues by agreeing to redactions
in the underlying documents and the description of those documents in the Report, to
Hon. James M. Peck
March 9, 2010
Page -2-
eliminate disclosure of sensitive personal or proprietary information where the
Examiner has determined that information has no relevance to his Report. Although
the redactions are limited, they do alter the Report as currently filed under seal, so the
Examiner will seek leave to withdraw the Report as filed and substitute a final Report,
which we plan to have available Thursday when we appear before you.
The pleadings filed Thursday by certain parties raise and reserve issues about the right
of other parties to question the redactions that the Examiner has agreed to. The
Examiner takes no position on those issues other than to state his belief that the
resolution of those concerns should not delay the publication of the Report and its
supporting materials.
We look forward to seeing your Honor on March 11, 2010.
Sincerely,
Robert L. Byman
cc: Counsel of record and other interested parties
Bonds have hit $.25 for the first time since the filing...still along way off and still going in the right direction!!!
Bonds
Ratings Last Sale
Symbol CUSIP Type Issuer Name Coupon Maturity Moody's S&P Fitch Last $ Change Yield Last Sale Date & Time Remove
LEHM.GBG 52517PC58 Corporate LEHMAN BROS HLDGS INC 2.88 10/22/2008 NR NR NR 23.500 - - 03/05/2010 14:09:15
LEHM.GBY 52517PD65 Corporate LEHMAN BROS HLDGS INC 3.01 12/23/2010 NR NR CCC 21.250 - - 02/25/2010 07:18:45
LEHM.GCV 52517PF63 Corporate LEHMAN BROS HLDGS INC 5.50 04/04/2016 NR NR CCC 24.375 0.500 - 03/08/2010 09:13:39
LEHM.GTP 52517PH61 Corporate LEHMAN BROS HLDGS INC 5.75 05/17/2013 NR NR CCC 22.500 2.125 - 03/08/2010 15:39:00
LEHM.GUL 52517PK59 Corporate LEHMAN BROS HLDGS INC 5.75 07/18/2011 NR NR CCC 22.441 -1.172 - 03/08/2010 13:46:13
LEHM.GZJ 52517PR60 Corporate LEHMAN BROS HLDGS INC 5.25 02/06/2012 NR NR CCC 22.500 -1.625 - 03/09/2010 12:11:43
LEHM.HDG 52517P2K6 Corporate LEHMAN BROS HLDGS INC 2.95 05/25/2010 NR NR CCC 23.875 -0.188 - 03/09/2010 07:54:36
LEHM.HEO 52517P4C2 Corporate LEHMAN BROS HLDGS INC 6.00 07/19/2012 NR NR CCC 22.500 -1.625 - 03/08/2010 12:31:10
LEHM.HF 524908BQ2 Corporate LEHMAN BROS HLDGS INC 7.20 08/15/2009 NR NR CCC 22.500 0.375 - 03/09/2010 10:39:00
LEHM.HQ 524908CF5 Corporate LEHMAN BROS HLDGS INC 7.88 11/01/2009 NR NR CCC 23.375 0.875 - 03/09/2010 10:37:46
LEHM.JDJ 5252M0BZ9 Corporate LEHMAN BROS HLDGS INC 5.63 01/24/2013 NR A+ CCC 24.500 -0.250 - 03/09/2010 10:43:06
LEHM.JGY 5252M0FD4 Corporate LEHMAN BROS HLDGS INC 6.88 05/02/2018 NR NR CCC 25.000 0.375 - 03/09/2010 12:08:37
LEHM.TF 52517PVM0 Corporate LEHMAN BROS HLDGS INC 4.38 11/30/2010 NR NR CCC 22.250 -0.100 - 03/09/2010 12:11:00
LEHM.TX 52517PVV0 Corporate LEHMAN BROS HLDGS INC 4.80 03/13/2014 NR NR CCC 22.125 0.125 - 03/08/2010 16:33:46
LEHM.TZ 52517PVU2 Corporate LEHMAN BROS HLDGS INC 3.60 03/13/2009 NR NR CCC 23.400 0.400 - 03/08/2010 16:48:44
LEHM.XS 52517PYN5 Corporate LEHMAN BROS HLDGS INC 4.25 01/27/2010 NR NR CCC 23.000 -0.750 - 03/09/2010 08:28:01
LEHM.ZZ 52517PA35 Corporate LEHMAN BROS HLDGS INC 4.50 07/26/2010 NR NR CCC 24.375 1.375 - 03/09/2010 11:57:26
Highest post filing weekly close on LEHJQ is $.22, so we are right in the hunt to set up for next weeks blow off to $2.50.
Just my opinion. Come on Mr. Valukas!
Looking at the charts the J's look like they are heading for $.75 IMO.
LEHMQ looking like $.30-$.50.
Just my thoughts. Make your own decisions. The setup appears to be there.
Brikk:
I may have posted individually that the Debtors will be out on March 8th with their "reorg plan".
Please excuse me if I did. IT SHOULD BE MARCH 15TH, 2010.
Good luck to all...and remember...the Perfect Storm.
Ivan you have been here since the beginning! Way to go!
Keep the Faith...on Wed./Thurs. we get Judge Peck's ruling on the Examiner's Report to be "UNSEALED". If it is like the Barclays transcripts, once the permission was granted, it was posted soon thereafter.
After that weekend reading of 2,200 plus pages about the same amount of pages supporting appendices, the Debtors are going to release their version of the Reorganization Plan on March 15th.
Mr Miller lead Debtor's attorney, has said in court documents, that entities have been inquiring about Lehman since the fall of 2009. I expect competing reorg plans from additional parties that see value in Lehman.
Good Luck to All!
CAN YOU THINK OF ANY COMPANY THAT MIGHT BENEFIT LIKE METLIFE HAS IN THE LAST NINE MONTHS??
MetLife’s Surge in Corporate Debt Bolstered AIG Bid (Update2)
Hugh Son, John Detrixhe and Andrew Frye
http://www.bloomberg.com/apps/news?pid=20601087&sid=a7tFOsuMDWak&pos=3
March 8 (Bloomberg) -- MetLife Inc., the insurer that increased its bid to acquire a unit from American International Group Inc., was bolstered by more than $16 billion of gains in its corporate bond portfolio in the last nine months of 2009.
MetLife will pay about $15.5 billion for an American International Group Inc. unit with operations in more than 50 countries, the companies said today. That is about $4 billion more than the New York-based company offered in a preliminary bid for American Life Insurance Co. a year ago, according to people with knowledge of the negotiations who declined to be identified because talks were private.
MetLife’s book value per share, a measure of assets minus liabilities watched by ratings firms and investors, rose about 44 percent in the three quarters ended Dec. 31 as recovering debt markets buoyed the value of its corporate bond portfolio to more than $100 billion. The rebound contributed to a 55 percent surge in MetLife shares in the period, helping the insurer as it pays $8.7 billion in equity securities as part of the AIG deal.
Oh Yeah...
MEMORANDUM OF LAW IN SUPPORT OF TRUSTEE'S MOTION FOR AN ORDER
CONFIRMING THE TRUSTEE'S DETERMINATIONS DENYING TREATMENT OF
CERTAIN CLAIMS AS AGAINST LEHMAN BROTHERS INC.
AND EXPUNGING ANY CORRESPONDING OBJECTIONS
THE CLAIMS DETERMINATION PROCESS
8. Beginning in early 2009, the Trustee’s staff and professionals undertook the
examination of all timely filed Customer Claim Forms in the SIPA proceeding. In reaching
recommended determinations, the Trustee’s professionals consulted the Customer Claim Form
and attached documents, LBI’s books and records and sources of information, including account
analysis systems, and any additional documentation provided by the claimant. Further, the
Trustee’s professionals ran searches in LBI’s account systems based on a claimant’s name,
address, and social security number to identify any relationships the claimant may have had with
LBI. Requests for supplemental information were mailed to claimants where an initial review
showed that the claim could not be reconciled based on the Customer Claim Form and any
attached materials.
9. This process identified at least several hundred cases where the claimant did not
have a relationship with LBI, but may have had a relationship with another Lehman or non-
Lehman entity. The Trustee notified each affected claimant of this determination by a Letter of
Determination (“LOD”), which, in accordance with the Claims Procedures Order, set forth the
procedure for filing a written objection if the claimant disagreed with the Trustee’s determination
and wished to have a Court hearing on its objection.
10. Thirty-three claimants (representing forty-one claims) filed written objections to
the Trustee’s LODs, sometimes providing further materials or explanations in support of their
claims. The Trustee’s staff and professionals reviewed and analyzed any new information
submitted with a claimant’s objection, and contacted each of the objecting claimants. In some
instances, new information submitted with the claimant’s objection supported amending the
Trustee’s determination, and the claimants withdrew their objections. In other instances, review
of the objections confirmed the initial conclusion that the claim was not based upon an obligation
of LBI.
11. With respect to each of the six claims that remain in dispute, the related Customer
Claim Forms and written objections reveal on their face that the claim is not based on any
obligation of LBI or is not otherwise a valid customer claim protected under SIPA. Exhibit A
hereto displays in tabular form the defects directly evidenced by the materials filed by the
claimants themselves (which are admissions for present purposes).2 In addition, searches by the
2. Customer Claim Forms (submitted both through mail and electronically) and Objections of the Claimants are
attached hereto as Exhibits B through G. For the Court’s convenience, the exhibits were individually Bates
Stamped and numbered by the Trustee.
6
Trustee’s staff and professionals have confirmed that no other LBI relationships or obligations to
these claimants appear on the Debtor’s books and records.
Looks like out of the "Hundreds" of LBI Claims left to be reconciled, 41 Claims were objected to and only 6 are left!
JUST IN CASE YOU MISSED IT!
REMEMBER THIS IS ONLY THE BROKER/DEALER SIDE BEING LIQUIDATED, NOT LBHI. BUT THE MORE MONEY LEFT OVER...COMES TO LBHI.
Thanks to all for the kind comments...
Please make sure you give Troy a high five for his Worldwide Blog...http://www.lehmanlotto.blogspot.com/
Statement
4. The Court appointed the Examiner to investigate, inter alia, the events that
precipitated Lehman Brothers’ downfall and to report his findings. The Debtors have cooperated
fully with the Examiner’s investigation. Over the past several months, in response to hundreds
of pages of document requests, the Debtors have produced over 20 million pages of e-mails. In
addition, the Debtors have provided the Examiner with access to numerous other sources of data,
have made employees of the Estate available for interviews with the Examiner, and assisted in
arranging interviews with dozens of former Lehman employees. The Debtors have dedicated a
large number of attorneys, technology professionals, outside vendors, and other resources, in an
effort to produce documents and information to the Examiner in an expeditious manner.
US_ACTIVE:\43328677\04\43328677_4.DOC\58399.0003 3
5. In light of the importance of the subject matter of the Examiner’s
investigation to the Court, and the Debtors’ desire to cooperate with the Examiner’s
investigation, the Debtors support the Examiner’s request to unseal the Report.
6. The Examiner’s report should also be unsealed as a matter of public
policy. Under section 1106(b) of the Bankruptcy Code, the Examiner was required to submit to
the Court a statement regarding his investigation. 11 U.S.C. § 1106(b). The strong presumption
in favor of public access to such judicial documents, Lugosch v. Pyramid Co., 435 F.3d 110, 119
(2d Cir. 2006); In re FiberMark, Inc., 330 B.R. 480, 505 (Bankr. D. Vt. 2005), is codified in
§ 107 of the Bankruptcy Code and “helps safeguard the integrity . . . of our judicial system.”
FiberMark, Inc., 330 B.R. at 505 (citations and internal quotations omitted).
WHEREFORE, for the foregoing reasons, the Debtors support the request that
this Court enter an Order establishing procedures to unseal the Report, and granting the
Examiner such other and further relief as is just and proper.
Dated: March 8, 2010
New York, New York
I thought there were some inflamatory remarks myself Brikk...
Troy...we made the LBHI Court Docket #7459, page 3-4.
Looks like you are getting more and more visability everyday on your blog. Congrats.
The only settlements that the Lehmans will have is with the entities that they are in legal posturing with. There is more than one currently.
After the Examiner's Report in a couple of days there will be more added to that list, IMO.
The most important items going forward in the next week are the Examiner's Report, the new balance sheet (MOR) and the Reorg Plan. IMO.
I respectfully agree with YOU GANG GREEN!
We are getting ready to erupt...very soon.
When was the five day period up for the Examiner's Report again...March 10th?
Mine came thru as a daily chart on the J's...FYI.
Thanks Arnold...can you post the monthly. I think that gives the best read.
Coach T
Thanks Arnold!
Monthly charts are really warming up here...looks like a low level cup and handle to me. IMO $2.00-$2.50 is on the horizon for this chart...soon.
Make your own decisions...not sure if you can access this. Arnold can you repost this chart on LEHMQ and LEHJQ?
Thanks,
Bonds are at new post filing highs...still a long way off but steadily heading north. Trying to get thru the $.25 area...
$.24-$.2475
$.20-$.21
It is pretty straightforaward...LBCCA made loans and are getting 94% of the money back thru refinancings , etc. I think early on the "experts" were saying Lehman Asia might get 60% on the dollar
It is our money at the end. The last balance sheet the Debtors marked down $26B in "Investments in Affiliates" category. That was the Balance Sheet dated June 30, 2009.
Everything I read says the marketplace is markedly better in most of the categories Lehman has marked down.
Now it is time for the markups. This is just one instance. Thus the post.
Lehman Brothers Liquidators KPMG
"To date the realisation of some USD $270M from the China Real Estate Portfolio represents a recovery of 94% of the portfolio's Septenber 2008 book value, generating significant value for Lehman Brothers Commercial Corporation of Asia's creditors!"
That is 94%...in case you missed it.
Great press release on the LBCCA liquiidators website.
http://www.kpmg.com.cn/en/about/KPMG_news/Lehman_updates/Updates_20100304.html?TopMenuOn=4&LeftMenuOn=5&NoChinese=1
Kind of sounds the like the Perfect Storm coming...
Lehman Brothers Liquidators KPMG
"To date the realisation of some USD $270M from the China Real Estate Portfolio represents a recovery of 94% of the portfolio's Septenber 2008 book value, generating significant value for Lehman Brothers Commercial Corporation of Asia's creditors!"
That is 94%...in case you missed it.
Great press release on the LBCCA liquiidators website.
http://www.kpmg.com.cn/en/about/KPMG_news/Lehman_updates/Updates_20100304.html?TopMenuOn=4&LeftMenuOn=5&NoChinese=1
Kind of sounds the like the Perfect Storm coming.
HEADS UP! This article is pretty interesting about JPM, Lehman, WAMU. Don't know how accurate but an interesting read.
http://www.marketoracle.co.uk/Article6826.html
Converting the K's into more leverage with the WAMUQ's commons.
The K's seems to be the best value of the WAMU family, IMO...however, it also appears that there is a conversion from the K's into the Common, at least since I have been watching.
My guess is that risk reward will start to lean back to the priority and the $25 face value soon.
I have been wondering about the divi's both here and on the Lehmans. It would seem that even though they are Non-Cunulative for the WAMKQ and LEHJQ if.when the payout comes it would get paid. I wonder what the precedent is?
Hammer:
Just curious if anyone has done any research/discussion for the dividends not paid since the filing...because the K's are non-cumulative would the dividends be eligible to be paid on these?
Sounds like Moody's is downgrading some of the Structured Products that now have to get in line with other Lehman unsecured creditors because of the ruling by Judge Peck that funds from liquidated Structured Products goes to Lehman first not to stakeholders of the SPV.
Prior to Judge Peck's ruling...the money would have gone to the SPV stakeholders direct. More money for the Lehman pool!
There is no stopping this, now that we are in March. Sellers today were trying to get into more WAMU. Loved the close on the Common shares!
Today's close puts Lehman Preffered and Common in position for $.40 soon, IMO.
First of all, congratulations on the new baby.
Not sure we have enough info on the 5 day question yet. My sense is that Bloomberg is trying to appease enough of the players to get some of the info released ASAP.
Some better than none.
Bloomberg, LP. parent of Bloomberg News is calling for public access to the Examiner's Report (with minor adjustments). Calling for the unsealing both as a creditor and as the "eyes and ears of the public".
HERE COMES THE PRESSURE FROM THE PUBLIC TO UNSEAL! Next up will probably be the US Trustee.
Only 330 pages of FLUFF! Nice smokescreen Barclays.
Keep the Faith!
Only if it went over the 5% on Common and 4.5% on Preferred. The other Covered Claims are unrestricted. That is why I think you see the big money going there first.
If an investor tried to come in to the "Pinks" with $500M it would blow the lid off because of the "illiquidity" of the Pink Sheets.
You can buy claims all day long with large money and know the price to a large extent.
I am not certain. Here are the facts.
Elliot Management started the Ad Hoc Creditors Committee wanting A&M to speed up the reorg...even accusing A&M of dragging their feet to earn more fees.
Elliot Mgmt. is now on the Creditors Committee.
Elliot Mgmt. files a motion to keep separate the information gained in the Creditors Committee from its trading and investment desks.
Elliot Mgmt. will notify of increase or decrease in the size of its Lehman holdings by 1/3 reduction and 2/3 increase.
Seems to me the pattern of Elliot Mgmt. is they are getting more involved with each layer of Lehman that they are exposed to.
I find it a plus...IMO. If they were going to reduce their holdings...they would not have had to file a motion.
"Covered Claims" includes Stocks...according to the motion of Elliot Management.
Also, if their holdings reduce by more than 1/3 they have to notify.
Also, if their holdings increase by 2/3 they have to notify.
I do not think Elliot would request this motion if they were trying to reduce their holdings...they would have just reduced their position.
More to come...