Replies to post #2354 on Lehman Brothers Holdings Capital Trust III (LEHKQ)

[marayatano]

The WMI Cap Trusts were the lowest form of debt. It was lower than subordinate notes of WMI. That is why they were in their own class.

Lehman should have done the same and separate the two the class, but instead lumped them together (like Lehman's equity's preferreds and commons) as if they really didn't care. If Lehman did the same as in WMI's POR, I would have had a "more" senior position in payout and my odds of payment would be better.

Subordinate Claims are in a Class lower than the WMI Capital Trust and so they can't be the lowest form of debt.


I also meant to say Subordinate and not Junior.


"I happen to think that the WMI Capital Trusts were in a Class of their own because they were a Subordinate Claim with a Guarantee."

imo