Lehman Brothers Financial SA (LEHNQ)

[Joe Stocks]

LBIE would not have any NOLs because any net operating losses would be generated and reflected on the consolidated operating statement of the holding company.

LBIE will not merge with LBHI. No point in doing so. LBIE would just be liquidated if they did to satisfy creditors. LBIE will continue to liquidate for the benefit of their shareholder, LBHI.

Keep in mind that LBHI is a holding company. A holding company that in general had no operating company. LBHI job was to manage LBHI assets and produce investment income. The affiliates are who generally generated all income/losses. LBIE is more like LBI that LBHI.

This is why the judge said Lehman is no longer.

A holding company is a parent business entity—usually a corporation or LLC—that doesn't manufacture anything, sell any products or services, or conduct any other business operations. Its purpose, as the name implies, is to hold the controlling stock or membership interests in other companies