Lehman Brothers Financial SA (LEHNQ)

[GreatFinancialCosplay08]

0.1% for now is correct.

Also my $ isn't for the spot price on OTC Markets. But if you owned 0.1% of $AAPL that'd be a good amount of money to get going.

Lehman owned MANY Fannie Mae and Freddie PFDs too. If you read REPO 105 part of the Examiner's report by Jenner & Block from back in the day - the PFD securities were a big part of their collateral to secure $50B in operational cash - they didn't just do it before the end of the the quarter to "hide" assets and deleverage as they claim.

Sep 1, 2010 - people don't ever realize Fuld gave the true reason why Lehman Brothers "failed" (they did not). It's short and to the point. The PFDs of Fannie and Freddie which went into Conservatorship on Sep 7 2008 is mentioned. The reason I suspect they don't show on the end of Q2 2008 (6/30/2008) 13 HF/A disclosure of their holdings is because they are mentioned as being "recently issued PFDs":

Despite all those efforts, unfounded rumors about Lehman continued to besiege the firm and erode confidence. An investment bank’s very existence depends on confidence to consummate transactions, pledge collateral and repay loans. Without that confidence, no bank can function or continue to exist. This loss of confidence, although unjustified and irrational, became a self-fulfilling prophecy and culminated in a classic run on the bank starting on September 10, 2008, that then led Lehman to file for bankruptcy four days later, in the early morning hours of September 15. In broad summary, on Sunday, September 7, 2008, the federal government placed Freddie Mac and Fannie Mae in conservatorship, destroying the value of their recently issued preferred shares. Two days later, on September 9, there were news reports that Lehman’s talks with the Korean Development Bank had faltered. That day Lehman’s stock dropped 45%. The next day, September 10, Lehman pre released its third quarter 2008 results. The firm reported a net $3.9 billion loss, including $7.8 billion in gross writedowns on its residential mortgage and commercial real estate holdings. Even with this loss, Lehman still reported an equity capital position of $28.4 billion ($2.2 billion higher than the previous quarter). Lehman also announced plans to divest $25 billion of its commercial real estate assets into a separately capitalized entity. More rumors swirled that led the market to believe that Lehman’s assets were not adequately marked to market and that Lehman did not have enough capital to withstand further writedowns. Those rumors proved to be completely false. Lehman’s stock dropped further. The run on the bank then started. Lehman’s principal clearing banks demanded that Lehman post additional collateral. Counterparties to the numerous repurchase transactions that Lehman conducted on a daily basis began to withdraw business and to demand increased collateral to consummate trades. Liquidity was frozen by those clearing banks, and hedge fund customers began migrating to other firms.

That's the key - these are hidden, likely still there because the people running this 16.5 year CH 11 as well as the administrations and other subsidiary liquidations know the goal is to come out with every last Class of claims paid out because if you read Fuld's 8 page testimony, he explains how they are far better off than people believed from the 2008 fallout. It's true too. They had at least tens of billions in equity and that is not a company that goes into CH 11. Had this been today - it wouldn't have even taken a bailout. This was a two-step Government and JPM/Citi squeeze to deny LB's their operating cash and then some. That's the truth of it. This is why these two cash cows that have been ready for privatization are set to bring all these securities into the light when it comes to LBHI's balance sheet. Until they are off OTC and back on the NYSE (which is the plan for this admin in second half 2025) then that collateral Fuld mentions will reappear. Billions. The commons are just my way of showing as of the final earning report the month before their CH 11 - Lehman Brothers Holdings Inc (and their consolidated balance sheet which included their subsidiary broker-dealers etc - both LBIE and LBI esp) was disclosing it's common shares. Worth a read - it goes along with my other posts: Written Statement Of Richard S. Fuld, Jr. Before The Financial Crisis Inquiry Commission (September 1, 2010) Don't worry about the Fannie and Freddie Conservatorship they're just an important reason why things are coming to a close. Had President Trump not been focused since term one to bring Fannie Mae and Freddie Mac out of government Conservatorship - the can would've been kicked down the road forever on that and Lehman Brothers might have a lot just been stalled for good as well. This is a really really complicated history so I am just keeping it to what's on the balance sheet that you don't see that will come back with the value needed to power through the rest of this CH 11 even Class 12 $LEH common stock holders (the majority of which were the employees working for mostly $LEH stock because it motivated them to perform.) If you really wanna go deep you can read the Examiner's Report by Jenner & Block that describes these accounting practices - but you also might need a few months to grasp it. For me it was worth it: https://www.jenner.com/en/news-insights/news/lehman-brothers-holdings-inc-chapter-11-proceedings-examiner-s-report