Lehman Brothers Financial SA (LEHNQ)

[linda1]

Hi -


Your post confirms that the Guarantee
is unsecured and subordinate - in the event
of a bankruptcy no payment can be made
on the Guarantee until senior debt is paid
in full.



From the prospectus-

Status of the Guarantees

The guarantee will constitute an unsecured obligation of Lehman Brothers Holdings and will rank:

•
subordinate and junior in right of payment to all other liabilities of Lehman Brothers Holdings,

•
on a parity with the most senior preferred or preference stock now or hereafter issued by Lehman Brothers Holdings and with any guarantee now or hereafter entered into by Lehman Brothers Holdings in respect of any preferred securities of any affiliate of Lehman Brothers Holdings, and

•
senior to Lehman Brothers Holding's common stock.
The guarantee will not place a limitation on the amount of additional senior debt that may be incurred by Lehman Brothers Holding





………………………………………………….