04-11-2008, 05:27 PM
|
#21 (permalink)
|
|
Banned
|
Arthurdale, in 1933, seemed a better project for the government, than bailing out Bear Stearns. Lehman, et aL:
http://www.nps.gov/archive/elro/glossary/arthurdale.htm
When you attempt to resell loans you have on your books <h3>that investors mostly rejected</h3>, doesn't that mean that there was no bid for them...as in worthless crap?
Quote:
http://www.reuters.com/articlePrint?...39492520080411
Lehman makes move to turn unsold debt to cash: report
Fri Apr 11, 2008 6:27am EDT
NEW YORK (Reuters) - Lehman Brothers Holdings Inc (LEH.N: Quote, Profile, Research) repackaged unsold debt and used the Federal Reserve's new borrowing facility to convert loans <h3>that investors mostly rejected</h3> into cash to finance its business, the Wall Street Journal reported.
According to the Journal, Lehman transferred $2.8 billion in loans that included some risky leveraged buyout debt into a new investment entity called Freedom.
Freedom then issued debt securities backed by the loans, and $2.26 billion of the securities got investment-grade credit rankings from Moody's and Standard & Poor's, according to the report.
The bank used some of those securities as collateral for a low-interest, short-term cash loan from the Federal Reserve, the Journal said, citing people familiar with the matter.
The move was meant as a test to see what the Federal Reserve would accept, and the size of the loan was not material, the Journal added, citing a person familiar with the matter.
Lehman representatives and the Federal Reserve could not be reached immediately for comment.
|
Conflict of interest?
Quote:
http://www.reuters.com/articlePrint?...46902620070830
Lehman hires Jeb Bush as private equity advisor
Thu Aug 30, 2007 5:36pm EDT
NEW YORK, Aug 30 (Reuters) - Lehman Brothers has hired Jeb Bush, brother of the President of the United States, as an advisor to its private equity business, a source familiar with the situation said.
Lehman hired another relative of U.S. President George W. Bush last year--George Walker, a second cousin, who heads up the bank's asset management business.
Jeb Bush is the former governor of Florida.
Lehman Brothers declined to comment.
|
Quote:
http://www.dailykos.com/story/2008/3...365/755/482314
New York Times, October 8, 1931
"President Hoover's financial plan," Joseph P. Day said in part, "is a step in the right direction towards making real estate investment more liquid. The system will make it possible for the Federal Reserve Bank to issue acceptance notes against sound real estate securities, thus stabilizing their values. <h3>Real estate mortgages are commonly regarded in banking as frozen assets.</h3> The Hoover plan seeks to take these substantial investments from the frozen asset class and give them a recognized value."
|
|
|
|