Cheers

Subsidiaries Disposed of
-
LB Alpha Finance Cayman Limited
27 September 2005 $350m $350m -

Nonetheless, deals like this seems to have connections to Floating Rate Notes….

On 1 July 2003, ASB Investments Limited was sold to ASB Group (Life) Limited.
Stockbridge Holdings Limited was incorporated on 14 July 2003 and SR Edinburgh Limited was acquired on 30 July 2003 resulting
in an increase of $400.0m to the net assets of the Banking Group.
The investment in Silver Fern Investments Limited was sold on 19 September 2003 resulting in a decrease of $600.0m to the net
assets of the Banking Group.

reports.asb.co.nz/tp/download/89163/fcd41708c1434361f0f3f6f619b9f2de/ASB-Jun-07.pdf –

Basis of Consolidation
Subsidiaries
Subsidiaries are those entities controlled by the Bank. Control exists when the Bank has the power, directly or indirectly, to govern
the financial and operating policies of entities so as to obtain benefits from its activities. The financial statements of subsidiaries are
included in the consolidated financial statements from the date on which control is transferred to the Bank until the date that control
ceases.
Assets, liabilities and results of subsidiaries are included in the consolidated financial statements on the basis of financial
statements made up to balance date, using the purchase method. All intra-group balances and transactions have been eliminated in
preparing the consolidated financial statements.
Associates
Associates are those entities in which the Bank has significant influence, but not control, over the financial and operating policies.
The Bank has representation on the board of directors of all companies classified as Associates. Associates are accounted for under
the equity method of accounting.

asianbanks.net/HTML/Files/NZ/ASB%20Annual%202002.pdf

The companies and subsidiaries under which we provide our customers with the range of
products and services they need to achieve their financial goals are collectively known as
ASB Group.

SilverFern Investments Limited is included as an in-substance subsidiary as the 25% shareholding represents 70% of the voting rights.
The day-to-day management of SilverFern Investments Limited and LB Alpha Finance (Cayman) Limited is provided by external parties.
The Companies Office has given exemptions for L B Alpha Finance (Cayman) Limited and SilverFern Investments Limited to maintain balance
dates different to that of The Bank.

Bastards, I love hunting under rocks for these snakes, but they have so many little holes to crawl in and then spawn. The good news is, they always, without fail screw up and pop up retarded heads as if the coast is clear!

Re: “By pushing the company’s aggressive investment strategy, he helped make Enron the biggest wholesaler of gas and electricity, with $27 billion traded in a quarter. The firm’s figures, however, had to be accepted at face value. Under Skilling, Enron adopted mark to market accounting, in which anticipated future profits from any deal were tabulated as if real today. Thus, Enron could record gains from what over time might turn out losses, as the company’s fiscal health became secondary to manipulating its stock price on Wall Street during the Tech boom. But when a company’s success is measured by agreeable financial statements emerging from a black box, a term Skilling himself admitted, actual balance sheets prove inconvenient. Indeed, Enron’s unscrupulous actions were often gambles to keep the deception going and so push up the stock price, which was posted daily in the company elevator. An advancing number meant a continued infusion of investor capital on which debt-ridden Enron in large part subsisted. Its fall would collapse the house of cards. Under pressure to maintain the illusion, Skilling verbally attacked Wall Street Analyst Richard Grubman[3], who questioned Enron’s unusual accounting practice during a recorded conference call. When Grubman complained that Enron was the only company that could not release a balance sheet along with its earnings statements, Skilling replied “Well, thank you very much, we appreciate that . . . asshole.” “

Whoever is left at Lehman clearly wants them close by in case the board, regulators, unhappy investors (and their lawyers), or others, come calling, wanting to know the decision process and who was responsible for some of the more gargantuan losses and more tawdry deals. This includes the commitment and structured finance committees, the risk and legal groups, as well as senior business managers from both sides of the fence (banking and proprietary trading). Cannot blame them for their concern in this regard but as a shareholder, I wish that more thought had gone into these deals and perhaps some vig foregone at the outset rather than being used this way… . The funding of these vehicles and any sale of Tier 3 assets to them is just waaaay too creative to ignore, and why would shareholders who have been given the runaround before even want to?

2. Shares owned in LB Alpha Finance Cayman Limited and SilverFern Investments Limited carry 75% and 70% of the voting rights in the respective companies

3. Yah gotta love the fact that Lehman seems to have mis-placed some cash:

In interviews with Fortune, Miscik (pronounced MISS-ik) and her colleagues describe her improbable journey from Washington to Wall Street, where Lehman deploys her in the financial world not only for her steely intellect but also for her cachet as a former spy. At this year’s Black Diamond Executive Conference in Beaver Creek, Colo., the firm’s annual gathering for about 100 key clients, they booked her as a main speaker along with Alan Greenspan and Colin Powell. http://money.cnn.com/magazines/fortune/fortune_archive/2007/07/23/100134938/index.htm

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