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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: IngotWeTrust who wrote (11490)	9/21/2008 1:39:07 AM
From: RJA_	Read Replies (1) \| Respond to of 71442

Thats from Sinclairs site, jsmineset.com. However, there is no link to the original doc. I have asked him for one. Anyone have a link to this BIS allegation?

To: IngotWeTrust who wrote (11490)	9/21/2008 7:45:16 AM
From: Real Man	Read Replies (1) \| Respond to of 71442

Lehman had about 2 Trillion notional, I believe. Not all of them are equal, and they had a bunch of CDS, which are the worst, since when the credit default happens, notional becomes real. So does AIG (obviously, they are insurers, they have tons of CDS. How much? I don't know.). Here is the result (from Noland's CBB this week, which is a must read): September 15 – Bloomberg (Yalman Onaran and Christopher Scinta): “Lehman Brothers Holdings Inc., the fourth-largest U.S. investment bank, succumbed to the subprime mortgage crisis it helped create in the biggest bankruptcy filing in history. The 158-year-old firm, which survived railroad bankruptcies of the 1800s, the Great Depression in the 1930s and the collapse of Long-Term Capital Management a decade ago, filed a Chapter 11 petition with U.S. Bankruptcy Court… The collapse of Lehman, which listed more than $613 billion of debt, dwarfs WorldCom Inc.’s insolvency in 2002 and Drexel Burnham Lambert’s failure in 1990.” September 15 – Bloomberg (Jeff St.Onge): “Lehman Brothers Holdings Inc., the fourth-largest U.S. investment bank, owes its 10 largest unsecured creditors more than $157 billion, including debts to bondholders totaling $155 billion.” September 16 – Bloomberg (John Glover): “Lehman Brothers Holdings Inc. bondholders may lose more than $111 billion in the collapse of the investment bank, based on contracts used to set a recovery value for the debt, according to Bank of America Corp. analysts. So-called recovery swaps… Lehman’s $146 billion of outstanding senior debt traded at 35% of face value, the analysts wrote, indicating a loss of as much as 65%. Holders of about $18 billion of subordinated notes may recover 4% at the most…” September 19 – Financial Times (Jennifer Hughes): “Huge numbers of trades in which Lehman Brothers was a counterparty remain unsettled a week after the US bank collapsed and are likely to remain in limbo for some time. On Friday the London Stock Exchange warned there was no certainty that all the trades that dealers undertook with Lehman that were currently in the Crest settlement system and marked as LSE trades were in fact such…. Many dealers have been caught in a limbo because of the sudden nature of Lehman’s collapse. Most trades, even ‘those for immediate delivery’, are settled in two or three days, meaning that most of the deals done by Lehman traders in the last half of its last week are not officially settled.”