Lehman Brothers Financial SA (LEHNQ)

[real777mellon]

It may end sooner. Just depends how litigation moves along right?

How about the appeal ongoing in NY courts? Appears we are still not seeing any action on the 5/03/2024 filing by LBIE lawyers at Quinn Emmanuel (led by Andrew Rossman). This is still appealing the CDS payout or LACK there of by Assured Guaranty subsidiary AGFP that took 2011-2023 and then survived Appeal attempt #1 upholding the insane ruling that AGFP not only is allowed to break the ISDA 1992 contract and use some bogus alternative "valuation" process by which they claim it is LBIE that owes THEM $$$ rather than the amt of $465 Million sought in CDS payouts worth up to an est. $5.6 Billion back in 2009 should AGFP have honored the agreed payment per the ISDA 1992 swap agreement that was entered into by each party and only became an issue when AGFP was on the side of the deal where they needed to pay up to LBIE in early 2009 after the Q3 2008 collapse of the MBS market that these CDS were insuring for LBIE (and thus LBHI per the consolidation of balance sheets used to report for LBHI (as global parent of LBIE and all global subsidiaries of LBHI).



Crazy. Never ending. Odd to see them drag it out as if coordinated or waiting for the slow bi-annual progression of updates in the UK by PwC UK administrators of LBHI subsidiaries. 🤔

I personally think an appeal will be ruled in favor of LBIE as Rossman and Quinn Emmanuel make an excellent point in that upholding the AGFP "alternative" method for calculating the CDS swap value the precedent and problems set here would cause all ISDA swap agreements to be able to be blown up or backed out of by the CDS seller should they end up on the wrong side of the trade like AGFP did when the MBS market position LBIE was buying these CDS to insure crashed and triggered a CDS payout of up to $5.6 Billion back in 2008-09 as argued in this litigation since 2011 and it's first and second appeal. Now the second appeal being in limbo but with a great argument as mentioned, I can see the $465M min payout that LBIE seeks from AGFP being awarded... One must wonder how the system keeps messing this up but the damage to ISDA contracts would be catastrophic and market wide should this precedent be set for the seller to (for lack of better words) "bitch out" when they are on the wrong side of their CDS sales.
Source: https://iapps.courts.state.ny.us/nyscef/DocumentList?docketId=nBhmPgrlziYnQ3JvgTtW2A==&display=all