Lehman Brothers Financial SA (LEHNQ)

[ron_66271]

Owning Preferred Stocks Was Great Cash Flow.

WMI Series R Preferred ($1,000 face) paid about $300 a year. Two interest payments and one Performance Payment.
Therefore In just over three years your investment is covered.

The Preferred shares and many Bonds being backed up by mortgage, car, HELC, … monthly payments for the loan.

Good for Lehman’s for investing in others securities for cash flow.

One of my favorites;
According to the FDIC “WMB securitized $2 Trillion in RMBS of which $500 Billion was sold to F&F.”
Two Trillion in insured by CDS Derivative Contracts.
$1.5 Trillion to reimburse for losses.

WMI/WMB had $2 Trillion to reinvest in others securities or to hold in cash.

Same thing with Lehman and F&F.


Please keep posting Real. You are one of the few people that understands the Derivative Market Meltdown of 2008.

TBTF FAILED.



Ron