Any posts are my opinion, and should not be relied on for your investment decisions.
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Disregard, I see it now.
Also, the VERY low short volume shows that no one is willing to short a large number of these because-
a. they are deemed too risky to short in large amounts.
-or-
b. very few shares available to short.
Either accumulation or at a minimum covering their short. Likely its both. Either way making money.
IMO
Looking at the FINRA lists and seeing the late day paint. My guess is the late day paint is to get small retail to set a stop loss order and then take the retail shares out next day at lower price.
Repeat as many days as possible. Again, just opinion based on action and FINRA lists.
Yeah, someone is able to short these. They also cover quickly (daily).
My speculation, its some non-retail entity that has broader view to the order book (they know downside and upside before they commit).
Anyway, its a wait and see for now. Still a few options for an OK recovery on the CTs. It may take longer than some are able to take.
GLTA
The link and lists I posted are from FINRA. The Financial Industry Regulatory Authority. http://www.finra.org/AboutFINRA/index.htm
Like it or not someone is able to short these (likely not retail).
GLTY
F&F we're used to save our economy and American shareholders were thrown under the bus...
http://www.bbc.com/news/business-26609548
Mr Paulson was talking about the financial crisis of the autumn of 2008, and in particular the devastation being wreaked on Fannie Mae and Freddie Mac, the two huge underwriters of American mortgages - huge financial institutions that had a funny status at the time of being seen by investors to be the liability of the US government, which in legal reality were not exactly that.
“
Start Quote
This person told me that the Chinese had received a message from the Russians which was, 'Hey let's join together and sell Fannie and Freddie securities on the market'”
End Quote
Here is Mr Paulson on the unfolding drama:
"When Fannie Mae and Freddie Mac started to become unglued, and you know there were $5.4tn of securities relating to Fannie and Freddie, $1.7tn outside of the US. The Chinese were the biggest external investor holding Fannie and Freddie securities, so the Chinese were very, very concerned."
Or to put it another way, the Chinese government owned $1.7tn of mortgage-backed bonds issued by Fannie Mae and Freddie Mac, and it was deeply concerned it would incur huge losses on these bonds.
Mr Paulson: "I was talking to them [Chinese ministers and officials] regularly because I didn't want them to dump the securities on the market and precipitate a bigger crisis.
"And so when I went to Congress and asked for these emergency powers [to stabilise Fannie and Freddie], and I was getting the living daylights beaten out of me by our Congress publicly, I needed to call the Chinese regularly to explain to the Central Bank, 'listen this is our political system, this is political theatre, we will get this done'. And I didn't have quite that much certainty myself but I sure did everything I could to reassure them."
In other words, China had lent so much to the US that Mr Paulson needed to do his best to persuade its government and central bank that China's investment in all this US debt would not be impaired.
I agree its time for us to recover from being run over.
Guster,
I cannot post a link on YMB, so here is the link to FINRA published lists.
LEHNQ had short volume on many days. Here are a few from April 2014...
http://regsho.finra.org/FORFshvol20140408X.txt
http://regsho.finra.org/FORFshvol20140402X.txt
http://regsho.finra.org/FORFshvol20140401X.txt
LEHKQ, LEHNQ, LHHMQ had short vol here on 3/31
http://regsho.finra.org/FORFshvol20140331X.txt
Someone is shorting these and covering quickly.
The FNMAS board is most active for F&F prefs.
Here is a list of F&F equity tickers. The ones currently $8-11 are $25RV prefs the ones currently $16-18 are $50 RV prefs.
http://finance.yahoo.com/quotes/FMCC,FNMA,FMCKJ,FMCKI,FMCCM,FMCCK,FMCCT,FMCCI,FMCKK,FMCCG,FMCCH,FMCCL,FMCCN,FMCCO,FMCCP,FMCCJ,FMCKP,FMCCS,FMCKO,FMCKM,FMCKN,FMCKL,FNMAP,FNMAO,FNMAM,FNMAG,FNMAN,FNMAL,FNMAK,FNMAH,FNMAI,FNMAJ,FNMAS,FNMAT,FNMFM,FNMFN,FREJP/view/v1
Yes, I think good upside potential. Huge milestone on one of the large lawsuits was announced on Friday. Link below-
http://www.valueplays.net/2014/04/04/fairholme-wins-court-vs-treasuryfhfa/
Viva, are you talking about the acceleration language?
With such low volume on the CTs, likely some small swing trading going on to capture price discrepancy between same pref type. Also, has to be someone with free trades.
GLTA
JW
New Maloni GSE blog post - CWJC Gives Way Too Much to the Wrong People
http://malonigse.blogspot.com/
Rosen
This is very good news. Thanks for sharing. Has that order been signed off on by the judge or is it the proposed order?
Here is the link to the Alvarez & Marsal detail RE: 200B liquidation value
http://bipartisanpolicy.org/sites/default/files/files/GSO%20-%20FNMA%20FHLMC%20Methodology%20%20Assumptions%203-19-14.pdf
http://www.valueplays.net/2014/03/17/rep-capuano-fannie-mae-lawsuit-good-chance-succeeding/
“I had no problem taking them over, but like anyone else, I think that once they’ve paid their loan back we should reform them or let them go… and I personally think we should reform them but nonetheless… I actually think there is a lawsuit now, I think it has a very good chance of succeeding, that will show that what the government has done was probably not appropriate.”
I don't believe F&F are going anywhere soon. 5-10 years (min) is the transition time published in most of the proposals/draft bills being put forward.
Agree and correct. POR approved with a nice disclosure statement.
Can some creditors say I want more now? Yes, they can try or figure out a way to get more within the current developments and the state of the estate.
Likely will be the latter because the POR had strong approval.
The GSEs are still technically in the hole for ~187B and the 3rd PSPA requires that all future profits of the GSEs be paid directly to US TSY forever. Pretty bleak and pretty hard to hang in on that dark day in 2012.
GLTU
Yeah, they question was addressed very narrowly (re 10B).
Also funny they had to add, "The response below is not
provided for and should not be relied upon for investment guidance. The response is subject to change from time to time, without prior notice."
Not pumping or bashing. Posted the doc with link from Epic. I did add my thoughts. Some may agree or disagree. We all know now what your stance is and no need to post it multiple times per day on multiple boards. Again GLTU
Yeah, hard for me to read also Jersey. Again, they had to reply with something and it can only be what is public knowledge. I'm careful to take it in context.
They did start off saying essentially that the answer may change at any time...funny when you reread it a few times.
FWIW, the 3rd amendment to the GSE Sr pref agreement (PSPA with Fannie and Freddie) was devastating the day it was released in Aug of 2012. Those of us who were able to look beyond it and what could develop we're rewarded.
Just wanted to share the new doc posted. To be clear, I am holding. This reply RE: CTs is current public knowledge (that's all they can say). GLTA
Best JW
PS- odd timing and that they post a doc specific to the CTs
This was posted on the EPIQ site yesterday RE CTs...
http://dm.epiq11.com/LBH/Document/GetDocument/2465387
February 26, 2014
LEHMAN BROTHERS HOLDINGS INC., AS PLAN ADMINISTRATOR
RESPONSE TO QUESTIONS RECEIVED FROM CREDITORS
The reader should refer to the respective documents referenced herein. Capitalized terms used but not
defined herein shall have the meanings ascribed to them in the Modified Third Amended Joint Chapter 11
Plan of Lehman Brothers Holdings Inc. and Its Affiliated Debtors (the “Plan”). The response below is not
provided for and should not be relied upon for investment guidance. The response is subject to change
from time to time, without prior notice.
(1) Are the holders of the following securities (the “Trust Preferred Securities”) likely to receive
any recoveries?
Ticker Cusip Number Issuer/Trust
LEHKQ 52519Y209 Lehman Brothers Holdings Capital Trust III
LEHLQ 52520B206 Lehman Brothers Holdings Capital Trust IV
LHHMQ 52520E200 Lehman Brothers Holdings Capital Trust V
LEHNQ 52520X208 Lehman Brothers Holdings Capital Trust VI
Response: The Trust Preferred Securities were issued by the non-Debtor entities identified above (the “Trusts”). Based on relevant prospectuses, the sole assets of the Trusts were certain
subordinated debt securities (the “Subordinated Securities”) issued by Lehman Brothers Holdings Inc. (“LBHI”). Under the Plan, claims against LBHI on account of the Subordinated Securities have been classified in LBHI Class 10B. Based on the 2013+ Cash Flow Estimates filed on July 23, 2013 [ECF No. 38954], it is unlikely that the Trusts will receive any Distributions from LBHI on account of their class 10B claims. LBHI is not aware of any other assets currently owned or
expected to be realized by the Trusts.
Your pain has been great then. GL Gus, hope you are able to hang onto a few CTs and your escrow (if you have them). You may do Ok.
That settlement is only for those who owned pre chap 11.
Wow, vol. really dropping off...~5700 shares total today
SYMBOL TIME & PRICE CHG & % CHG DAY'S LOW & HIGH VOLUME AVG VOL MKT CAP CHART MORE INFO
Vol avg. vol.
? LEHKQ 10:29am EST 0.38 360 6,497
? LEHLQ 12:37pm EST 0.2501 1,419 9,589
? LEHNQ Feb 25 0.30 0.00 0.00 0
? LHHMQ 12:16pm EST 0.3520 4,019 16,352
Thx Helmsman. Yes Lehman has options to preserve NOLs...
Link below is a good read (see specifically 7th or 8th paragraph down that starts with, "Corporations emerging from bankruptcy can elect out of the Section 382"
http://www.picpa.org/Content/41511.aspx
Guster
Is that you sitting on the ask for t
Guster
Is that you sitting on the ask for the H and Ks?
BlueeFoxx,
Appreciate you sharing this information. Much thanks.
RE: NOL plays. Are you in Lehman Bros equity as well?
http://www.crainsnewyork.com/article/20120311/SUB/303119973#
Approx 36,000 shares total out of 48,000,000...
I would hardly call that conviction selling.
SGGH has to merge within a select group. I thought they were targeting industrial supply and specialized financing. Additionally a private firm(s).
Apples vs oranges IMHO
Best JW
In 2009, the world economy was in shambles.
In 2014, big financial firms are looking for tax shelters
FYI-
Docket 42917 02/19/2014
Letter to Honorable Shelley C. Chapman Regarding Fifty-first ADR Status Report filed by Peter Gruenberger on behalf of Lehman Brothers Holdings Inc.. (Gruenberger, Peter)
"In the 21 days following the last prior report. Debtors served two additional ADR Notices in Tier One. When added to the total Notices served in Tier Two, the total number of Notices served is now 451. During the immediately past reporting period, Debtors achieved settlements with counterparties in eleven ADR matters, none as a result of mediation. Upon closing of such settlement, Debtors will have received an aggregate total of $2,187,742.822 new dollars for the Debtors' estates. Settlements now have been achieved in 314 ADR matters involving 413 counterparties."
"I think this is right or close to right. I don't think anyone has figured out a way forward without the GSEs, so the key becomes to regulate them like public utilities to avoid an adverse outcome when the next systemic shock to the system comes along."
Exactly right 36. Simple solution that resolves the adverse outcomes.
Instead we have some in Congress trying to legislate housing finance Utopia. It just does not exist, but the legend may gather votes.
I'm done for now. Thx Guster and best of luck to you.
JW
I got a partial fill also. Done buying now.
Best JW
My order is sitting open GTC...no fills yet
Status Symbol Action Qty Order # Order Type Price Duration Expiration Qualifiers Order Time Session
Open LEHNQ Buy 100,000 XGDA6CB2014XXXX Limit $0.30 GTC 3/31/2014 4:00 PM None 2/18/2014 12:08 PM Regular
The order is with NITE also
Upped my order for 100K at .30 LEHNQ. The YMB was down when I tried.
My order is open fom Fri at .29 for 100K shares on LEHNQ. GTC