Lehman Brothers Financial SA (LEHNQ)

[marayatano]

The Godfather: I will keep my post brief and straight to the point because of time constraints. Anyone can chose to face reality or keep their "rose colored" glasses on.

Equity: preferrds and commons. Debtors keep them so they keep NOL carry forwards intact because all the major holder/institutions have already sold. Debtors canNOT have any major changes in ownership for at least 3 years or it will effect NOL carry forwards and reduce recovery for the creditors.

Cap trust/subordinate bonds (example: LEHNQ, LEHKQ, LEHLQ, CUSIP's etc.): Keep them intact. Why? So senior bonds can continue to enforce the subordination clause / make whole clause provisions. What does this do? Any distribution to cap/subordinate bonds are re-allocated to seniors bonds. Seniors bonds make (recover) more money than any other holding company creditor because they keep cap trusts/subordinate bonds intact. The reason why there is no ownership restriction on Cap Trust/subordinate bonds because it does not effect NOLs.

Using the combination of the above, yields a higher recovery for senior bonds because debtors are not paying any taxes (while enforcing the tax attributes on no ownership change re: NOLs) while they are liquidating Lehman and thus any taxes money not paid is then going to creditor.

Those of you know me, know I am straight shooter and tell it like it is.

In the end, I do not like to see people lose money and I want every one to make money.

People can choose to wait 5 to 10 years and be disappointed or face reality today.

Truth hurts, but I rather be the told the truth than lied to for many years... but that is just me.



imo