Replies to post #24967 on ParaFin Corporation (PFNO)

[waterchaser]

Clearly, investors are not buying the concept.
PPS is as low as a stock price can go.
Stock prices are fueled by expectations.
Nobody believes the bonds are real.

[Mirk_Water]

I was thinking about your post and the statement:

all ING Series FF Bearer Bonds held by financial Institutions have had their holdings in the Series FF Bearer Bonds converted into a Global note.

The following document verifies why bearer instruments have to go through a "clearing agent".

http://www.sullcrom.com/siteFiles/Publications/SC_Publication_Foreign_Targeted_Bearer_Bonds.pdf

In particular:

the obligation is represented by one or more global securities in physical form that are issued to and
held by a “clearing organization” (or by a custodian or depository acting as an agent of a clearing
organization) for the benefit of purchasers of interests in the obligation under arrangements that prohibit the transfer of the global securities except to a successor clearing organization subject to the same terms; and beneficial interests in the underlying obligation are transferable only through a book-entry system maintained by the clearing organization (or one of its agents).

If one reads through the whole document, then they can understand how bearer instruments can end up issued to NON-U.S. persons. I think that is important in understanding how the bonds could have come into the hands of the original holders.

The document opens another can of worms IMO for ING NV. If they 'cleared' the bonds in question during the bail-out, then they've incurred the tax liability on those instruments also. BTW, I am researching the 2009 ING bail out and have been in contact with a writer from Bloomberg Europe who covered that subject.

Cordially,

Mirk_Water