The Zombie Dancers

[stripus]

A very short list of suitors for a potential LEH buyout.
This really makes sense to me, taken from the J board:
Posted by: coach tequila Date: Saturday, October 10, 2009 11:22:53 AM
In reply to: brikk who wrote msg# 3159 Post # of 3171

It is hard to say...not a whole lot of information is available.

If I remember correctly, JPM had quite a bit of counterparty exposure along with Citi.

Barclay's tends to make the most sense to me. I believe when it all washes out that Barclay's can benefit the most. Both the US and UK wanted that marriage. No one knew what the potential derivative, CDO, Swap, etc. exposure was. At the time, no one trusted anyone. So no one stepped up.

IMO Barclay's has civil and criminal exposure to the way they were trying to get assets thru "under the tag" and behind Judge Peck's back. Including the top brass at Barclay's. There was an interview done with Bob Diamond of Barclay's last month and he was almost bragging about getting as many LEH assets as he could!

Judge Peck during the late night approval of the "Sale" left the door open that alot of work went into a short period of time to put the "Sale" of Lehman together and that the possibility existed that mistakes were made and might need to be revisited.

For $2B Barclay's could buy the LEH Common Stock, assume the $325B liabilities, including the $100B Bonds, plus the $11B Preferreds and Trusts, and have an $300B asset base that might be worth $400B in the coming months years.

That is not counting all of the relationships it would gain OVERNIGHT thru the existing thousands of counterparties holding derivatives, etc.

In effect, freeing up the notional $39 TRILLION of counterparty assets that are currently frozen worldwide. From a government standpoint...I don't think it is that far fetched for the US and UK to lend a hand for 30B that releases that type of money flow and investor confidence back into the global economy.

Not to mention the public relations bonanza that Barclay's would get by "saving the day" in front of the world!

Just my opinion...

Coach T