Replies to post #54051 on Lehman Brothers Financial SA (LEHNQ)

[etzetrade]

It is a tricky questions. We do not know how the debts been generated initially. But I could smell this hanky panky.

Lehman probably went through more than two doors, asking 1 penny for 1 dollar MBS from affiliates, and in return to ask a full payment by affiliates. In 2008, nobody wants to buy MBS, and it's a good return. Refinancing played a big role to save MBS, especially those were not from FnF.

[mellowbird]

Nellafom, these claims, or at least the ones I looked at, were for fraud. The transfer to Lehman involved paying the old claim holder some amount. Now Lehman owes itself. If they wrote a check to themselves, what would be the point.

Apart from all of this being an accounting nightmare as pointed out by Wayne, I can't see any economic benefit.