Replies to post #74209 on Lehman Brothers Financial SA (LEHNQ)

[jwnoble3]

I saw the settlement amount, but its unclear what RMBS remains.

SASCO was the Lehman securitizing entity, but those trusts were largely not held at SASCO

https://www.housingwire.com/articles/40327-rmbs-trustees-accept-24-billion-toxic-mortgage-settlement-from-lehman-brothers

As the Wall Street Journal notes:

Before its collapse, Lehman purchased and funneled millions of residential mortgages to its securitization subsidiary, which then bundled the loans into marketable financial products. The subsidiary, known as Structured Asset Securities Corp or SASCO, established hundreds of trusts and special-purpose vehicles that in turn issued the securities to pension funds, insurance companies and other institutional buyers.

And this settlement covers investors that bought into the SASCO trusts and others, which, in some cases, included mortgages with faulty underwriting.