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To: NucTrader who wrote (342682)9/4/2007 8:54:18 PM
From: stan_hughes  Read Replies (1) | Respond to of 436258
 
"Loss mitigation products" absolutely means derivatives, and by that description, I'm thinking default swaps, or something close to it -- what I don't know for lack of having researched the company is whether they've been selling some kind of derivative security that isn't kosher with the SEC, or if they've gotten themselves on the hook here somehow for something they didn't know they were assuming, and now think they may have been conned.

Given that the SEC is combing through their books, somebody in legal probably thought it would be a good idea to suspend the stock buyback program until this gets cleared up -- imagine the Monday Morning Quarterback lawsuits that would come from existing longs if the stock price goes down in the meantime (even for unrelated reasons) by those who would claim that the company improperly used the company treasury to repurchase shares at higher prices