Replies to post #113976 on Lehman Brothers Financial SA (LEHNQ)

[ron_66271]

RMBS, Sold as Bonds and Preferred Shares.

It gets better!
As I quoted the FDIC;
“WMB Securitized $2 Trillion in RMBS..”

But WMB doesn’t have $2 Trillion in securities.
Therefore the securities are overfunded by a factor of ~2.

2.2-2.5X face recovery for Bonds and Preferred Shares.

The put-backs are already in the Trusts to cover the defaulting loans to preserve the trust.
The CDS (derivatives) covers the losses.

CMBS!
Lehman’s and WaMu.



Ron