Replies to post #58260 on Lehman Brothers Financial SA (LEHNQ)

[rlinterests]

I REPEAT!!
The approximate 230B DEFICIT IS A NOL itself !! THEY LOST THAT MONEY !!

The cancellation of 230B debt will cancell the 230B NOL Dollar for dollar..... One minus one equals nada COMPRENDE?

Why would one do this? makes no sense to me. What gain is there in COD? Just seems to me, another alternative other than COD could be found. In this example I would try to preserve the $230B in negative operating losses.

There are Negative Operating Losses and there is also capital gains losses. I do not think they are the same, could be wrong. I tend to think it is about how the money raised by the debt issue,or even maybe the equity issue, was used. For acquiring assets, or for general operating expenses.

Was the money used to buy Real Estate holdings which decreased in value, or, pay the electric bill,the bill for the office space, the phone bill, etc.

But, this being a Bank, you could be right.

[jwnoble3]

Exactly toogood, Lehman had a liquidity problem, not an asset problem when they filed for BK. $639B Assets $618B Liab.

Some assets were sold at firesale prices in the early days of BK but A&M stated they were brought in to build a bridge to a better time (when they could get more for the assets). This also added to NOLs.

Also, A&M said LAMCO was "shelved" for now, not eliminated.

Really wish they would get rolling with the major trials (JPM, Credit Suisse, etc).

The audits are interesting, keeping an eye on the status of the K's to change.

Best JW

[mellowbird]

toogood, this isn't even wrong. it's voodoo accounting. why do you write this kind of stuff?

mellowbird