There is only the guarantee clause...I mean don't look at the CTs only.. its not CTs vs. OBS... its reaffirmed debt vs. obs...its what is out there...LAMCO is set-up for a spin-off which means they are prime for a good bank scenario coming out of BK. Also, you look at the other huge BKs with the type of parties involved and what they did. The only successful exit from BK who are significant from this crisis is GM.
WAMU is a thrift with garbage assets...they were big but big in terms or a second rate commercial bank...go figure...devil
Signs, signs everywhere signs. Like I've said, CT's do not need to be in the OBS. Gosh man, have you ever even read the prospectus? CT's non dischargeable guarantee covers a lot more than the SPE having the funds to make payment. It is spelled out what occurs if in bankruptcy. If CT's do not get reaffirmed or redeemed than equity classes below them get nadda as well. The basic priority rules of bankruptcy aren't that difficult guys.