Comments on: So How Did Lehman Delever? A Not-Very-Pretty Possibility

By: Anonymous

Anonymous — Thu, 19 Jun 2008 02:17:00 +0000

The WSJ reported that Sherr was fired from LB in Sept of last year…now he’s their golden goose???

And as for prime brokerage booming, it would be perilous from a legal/compliance perspective for Lb to act as prime broker for a hedge fund in which it was such a significant investor. Bear Stearns, Ralph Cioffi-type, conflicts of interest, anyone? Nobody ever learns. And to the comment above, no one at the regs seems to be watching, or to care.

By: doc holiday

doc holiday — Wed, 18 Jun 2008 05:27:00 +0000

The following is an excerpt from a 10-Q SEC Filing, filed by LEHMAN BROTHERS HOLDINGS INC on 10/10/2006

http://sec.edgar-online.com/2006/10/10/0001104659-06-065900/Section2.asp

Mortgages and mortgage-backed positions include mortgage loans (both residential
and commercial), non-agency mortgage-backed securities and real estate
investments held for sale. We originate residential and commercial mortgage
loans as part of our mortgage trading and securitization activities and are a
market leader in mortgage-backed securities trading. We securitized
approximately $102 billion and $94 billion of residential mortgage loans for the
nine months ended August 31, 2006 and 2005, respectively, including both
originated loans and those we acquired in the secondary market. We originated
approximately $45 billion and $65 billion of residential mortgage loans for the
nine months ended August 31, 2006 and 2005, respectively. In addition, we
originated approximately $27 billion and $18 billion of commercial mortgage
loans for the nine months ended August 31, 2006 and 2005, respectively, the
majority of which has been sold through securitization or syndication
activities. See Note 3 to the Consolidated Financial Statements for additional
information about our securitization activities. We record mortgage loans at
fair value, with related mark-to-market gains and losses recognized in Principal
transactions in the Consolidated Statement of Income.

At August 31, 2006 and November 30, 2005, we owned approximately $8.9 billion
and $7.9 billion, respectively, of real estate held for sale. Our net investment
position after giving effect to non-recourse financing was $6.2 billion and $4.8
billion at August 31, 2006 and November 30, 2005, respectively.

By: doc holiday

doc holiday — Wed, 18 Jun 2008 05:09:00 +0000

Rick Rieder, head of Lehman Brothers’ proprietary investment strategies, is raising assets for a hedge fund that will invest in fixed income securities, according to people familiar with the matter.

Lehman Brothers will be a significant but a minority investor in the fund, dubbed R3 Capital Partners, which Mr Rieder hopes to launch at the end of the month.

Lehman executive in fund launch

http://www.ft.com/cms/s/0/7af12b70-1c89-11dd-8bfc-000077b07658,dwp_uuid=a58b7ee6-1c23-11dd-8bfc-000077b07658.html?nclick_check=1

By: Anonymous

Anonymous — Wed, 18 Jun 2008 02:11:00 +0000

It’s a variation of 3 card monte. Still, who’s going to do anything about it? Any regulating body in oversight?? gimme a break. They all have skin in the deceit so there’s a snowball’s chance in hell they’ll force the issue. Goldman Sachs is also doing something similar to unload its Cheyene position.

By: Anonymous

Anonymous — Tue, 17 Jun 2008 18:45:00 +0000

The Lehman connection is not in doubt at all. But that doesn’t mean LEH unloaded the problem assets on them.

Now if they had a couple of billion, lots of leverage extension, the right expertise, and the willingness to crater their reputations as asset mgrs right out of the box….

By: Michelange Baudoux

Michelange Baudoux — Tue, 17 Jun 2008 18:42:00 +0000

On the rumor radar, an even less pretty idea : X is to LEH what JPM is to BSC : a reverse investor :

http://bankimplode.com/blog/2008/06/15/lehman-brothers-is-another-jp-morgan/

By: Anonymous

Anonymous — Tue, 17 Jun 2008 18:08:00 +0000

Actually, both R3 and One William Street launched in May of this year, both are run by ex-Lehman sr execs,and Lehman has a significant stake in each. Incidentally, One William Street was the address of Lehman’s headquarters from the 1920’s to the 1970’s, so the name clearly suggests a significant Lehman connection.

By: Anonymous

Anonymous — Tue, 17 Jun 2008 17:09:00 +0000

The R3 and One William Street accusation appears to be a false rumor. These are both run by former Lehman guys, and were set up awhile ago. R3 focuses on liquid corp. bonds, not resi, comml. mtg, or Levgd loans. So they wouldn’t be buying those assets. One William Street is tiny (~$200 mil.) and couldn’t have even put a tiny dent in Lehman’s massive problem asset sale.

Also, Lehman did shift assets to L2 from L3…the net was toward L3, thanks to UK mortgage, but they did shift U.S. resi and comml. mtg to L2

By: Anonymous

Anonymous — Tue, 17 Jun 2008 15:25:00 +0000

well the guy was quoted in a bberg “plunge protection” article as working for LEH as/at March 19 of this year:

“`Every day the markets are full of rumor and trivia, and he has an ability to cut through that and get to what is the heart of the problem,’ said Rick Rieder, managing director and head of Global Principal Strategies at Lehman Brothers Holdings Inc., who serves as vice chairman of the Treasury’s bond borrowing advisory committee.”

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aSGeeYac8Pd8

Paulson’s Surrogate Steel Sees Early Market Progress

By: John

John — Tue, 17 Jun 2008 15:22:00 +0000

An analyst might want to contact them:
http://onewilliamstreet.com/