Lehman Brothers Financial SA (LEHNQ)

[LexingtonVIII]

The most important aspect of this article Joe is that all the income generated for the estate from these 6200 entities which will probably be sued by Lehmans will indeed have to at one point be distributed to creditors or will be a part of a new company that will see Lehman rise from its ashes.Either way, I see a strong possibility of CTs getting a piece of that cake. Whether it be because CTs get converted into common shares and then transferred into the OBS and a re-launch of a new company or a merger of some kind etc.. OR some distributions to CTs to buy them off, maybe at face value +interests.

This is perhaps the most striking aspect of LBHI’s recent filings, because the reference to “6,200 originators” strongly suggests that there may end up being thousands of new defendants sued by LBHI as a result of the RMBS settlement.