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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: elmatador who wrote (21544)	8/23/2007 1:38:16 AM
From: oldirtybastard	Read Replies (2) \| Respond to of 217576

Lehman been busy picking up high risk assets -g- Fears for US loans rock Northern Aug 22 2007 Western Mail ATTEMPTS by Northern Rock to soothe concerns about its exposure to recent market turmoil failed to lift its share price yesterday. The banking group’s shares slipped 2% – the biggest drop of any stock in the sector – as investors gave a lukewarm reaction to a statement from Northern last night highlighting its “minimal” exposure to US sub-prime mortgages. It said it had £275m in US collateralised debt obligations, or mortgage-backed securities, accounting for 0.24% of its total assets. The Newcastle company added, “These investments are intended to be held to their maturity and none have been downgraded or had their outlook changed by any rating agency.” The group also said it sold £465m of commercial property loans to a division of Lehman Brothers, following a similar sale to Lehman worth £838m in June. It said the latest disposal reflected its previously stated strategy of removing higher-risk assets from its balance sheet. icwales.icnetwork.co.uk Lehman also on the hook here with ASN buyout: Indeed, in the Archstone-Smith deal, Tishman Speyer put in only $250 million in equity. Lehman and its financing partners Bank of America and Barclays Capital, put in $4.85 billion of equity and so-called bridge equity, much of which they need to sell to investors. Lehman and its partners must also come up with $17 billion in debt financing at a time when credit markets are having trouble swallowing real-estate debt. online.wsj.com finally: Lehman held $79.6 billion of mortgages and mortgage-backed securities on its books as of May 31, up 38 percent from six months earlier, according to its quarterly earnings filing with the Securities and Exchange Commission. It originated about $32 billion of residential mortgages in the period and almost doubled its commercial mortgage loans to $32 billion

To: elmatador who wrote (21544)	8/23/2007 2:12:57 AM
From: energyplay	Respond to of 217576

From Bloomberg - In a regulatory filing last month, Lehman said it had ``unrealized'' losses of $459 million in the quarter ended May 31 from mortgages and mortgage-backed assets. Gains in corporate bond and equity holdings, as well as derivative contracts, offset those losses, according to the filing. Other brokerages and banks that bought U.S. mortgage lenders in the past year also face potential losses. Merrill Lynch & Co. paid $1.3 billion for First Franklin Financial Corp., and Morgan Stanley spent $706 million for Saxon Capital Inc. Deutsche Bank AG acquired MortgageIT Holdings Inc. for $429 million and Barclays Plc paid $76 million for Equifirst Corp. Spokesmen for Merrill, Barclays and Deutsche Bank declined to comment on their firms' plans for the mortgage-lending units. A Morgan Stanley spokesman didn't return a phone call seeking comment. ************************** With Lehman it should be easy - just roll all the iffy mortgages up, and stick it in Fannie, Freddie, and GinnyMae !