====================================================================
Oh Lehman, Where did you go wrong?
”Lehman Brothers Holdings Inc. may set up a company funded by outside investors to buy some of its mortgage assets, aiming to dispel concern the firm faces crippling losses, people familiar with the discussions said.”
“Investors in the new venture would also manage the holdings, which are linked to commercial real estate, the people said, declining to be identified because the proposal hasn’t been made public and no decision has been made about how to proceed. The New York-based firm had about $40 billion in commercial-mortgage assets as of May.”
“Our read: Lehman wants to move its toxic real estate holdings into a minority-owned off-balance-sheet vehicle to offload the troubles. Would be nice, wouldn’t it? Except, to do such a deal, they’ll probably have to retain the lion’s share of the loss exposure, unless they’re lucky enough to tap into a shrinking pool of greater fools.”
This entry was posted on Tuesday, August 26th, 2008 at 4:58 pm and is filed under 2008, ALT A, ARS, American, Analysis, Anonymous, Assets, Auction Rate Securities, August 18, Bailout, Bank, Banks, Bear Stearns, BlackRock, Breaking News, Business, Business News, Buyers, CDO, Capital, Close, Commercial Real Estate, Common Stock, Companies, Company, Comparison, Confidentiality, Debt, Derivitives, Developments, Diary of an American Dream, Discussion, Downey Savings and Loan, Economy, Europe, FHLMC, FNMA, Fannie, Fannie Mae, Federal Reserve, Finance, Financial Times, Firesale, Foreclosure, Freddie, Freddie Mac, Friends of Mozilo, GSE, Greenspan, HUD, Henry Cisneros, Home, Housing Crash, Housing Market, Implode-O-Meter, Inflation, Interventions, Investment, Issue Price, JP Morgan, Jamie Dimon, Journal, Labor Department, Lehman, Lehman Brothers, Life, Loss, Losses, MBS, Market Crash, Markets, Meltdown, Mortgage, Mortgage Backed Securities, Mozilo, Mr. Mortgage, Naked Capitalism, Naked Capitalist, New York, News, Not Funny, Option Arms, POA, Pay Option Arms, Performance, Politics, Poll, Portfolio, Private Equity, Quarter, Quarterly, REO, Real Estate, Real Estate Portfolio, Refinance, Regulation, Reuters, S&P, SIV, Sale, Scams, Securities, Short Sale, Shortfalls, Sources, Sovereign Wealth, Stocks, Subprime, The Street, Trades, Trading, UK, big Picture, crash, decline, earnings, graphs, shares, talks. You can follow any responses to this entry through the RSS 2.0 feed.
You can leave a response, or trackback from your own site.
