Lehman Brothers Financial SA (LEHNQ)

[hestheman]

Maraytanyo is quite intelligent when it comes to the bankruptcy aspects and how bankruptcies work. I know that might not be a popular thing to say on this board but I give him his due. That being said, while most prosepectus guarantees for a subordinated debt of our distinction would be worthless in a bankruptcy....once again, our contract states our guarantee will not be discharged. A very good arguement could be made in court that "discharged" is a common bankruptcy term and that the prospectus implies that the guarantee will not be dismissed even in bankruptcy. Some on here will point out that the guarantee is only valuable to the extent that the holding company pays the trust. Well...Lehman is emerging with $30 plus billion and tens of billions of dollars on top of that most likely, in assets. They will have an obligation to pay the trust or it is in default (read stockjoker post). The terms of the prospectus will once again be in play. At the very least Lehman will have to distribute new shares to CT holders in a preferred stock issue of equal value. JMHO