The document has made it onto the www. It is a 19pp pdf, US Southern District of NY. See rebeltraders.com. Of interest are Top Ten excerpted from Schedule 1, 30 Largest Unsecured Claims (excluding insiders). The Asian exchanges are closed for holiday today. Australians suspended LEH trading, although in terms of dollar exposure, Japanese commercial and investment banks rank higher over all LEH creditors. Not highly enough perhaps to have been invited to the war room this weekend.
Top Ten, USD billions
total $156.8B
total $144M
It is unclear for whom or institutional investors Citi and Bank of New York manage custodial accounts. With it filing, LEH also applied for a waiver of the requirement for filing a complete list of creditors. "The schedule of liabilities to be subsequently filed should be consulted for a list of the Debtor's creditors that is comprehensive and current as of the date of commencement of this case." That task will take some time, I'm sure. Diversity is the key to economic and political evolution.
If Lehman's assets get written down by 10%, then $30bn unsecured debt doesn't get paid and Citi loses $27bn out of $90bn (market cap). So Citi's shares would go down by 30%.
If Lehman's assets get written down by 20%, then that's $80bn unsecured debt unpaid, of which Citi eats $72bn (80% of Citi's market cap).
And if Lehman's assets get written down by 25% or more, that's it for Citi.</speculation> A vivid image of what should exist acts as a surrogate for reality. Pursuit of the image then prevents pursuit of the reality -- John K. Galbraith
All depends on the Bankruptcy work-out.
However, the other debt is small enough that "getting the shaft" is unlikely to topple the others. It's the $138bn figure that stands out. A vivid image of what should exist acts as a surrogate for reality. Pursuit of the image then prevents pursuit of the reality -- John K. Galbraith
At least until they have to do some debt roll-over.
Then ... who knows?
That's what I mean by "unusual consideration." I'll give it --facts available to the public-- some thought, then report. Diversity is the key to economic and political evolution.
Frankly, not Bush. Sorry, that freak is a "comma" in the scheme. The electorate will continue to seat their hoary jackasses despite it all and expecting somehow a different result ... Diversity is the key to economic and political evolution.
The loss depends on the terms of the Bankruptcy proceedings and how much 'Good Stuff' (positive Cash Flow instruments) there is in Lehman.
In its bankruptcy petition, Lehman listed Citigroup among its biggest unsecured creditors, with about $138 billion in bonds as of July 2. The Bank of New York Mellon Corp. was listed as holding about $17 billion in debt. Citi and Bank of New York both said Monday they serve as trustees for Lehman debt, not that they are creditors themselves. Citi issued a statement to say that its role is "administrative in nature and does not represent exposure for Citi to Lehman." Bank of New York said, "In this situation, our role has been to serve as a trustee for certain Lehman Brothers bond offerings. We have no outstanding loans to Lehman." Lehman said that as of May 31, it had assets of $639 billion and debt of $613 billion.
Citi and Bank of New York both said Monday they serve as trustees for Lehman debt, not that they are creditors themselves. Citi issued a statement to say that its role is "administrative in nature and does not represent exposure for Citi to Lehman." Bank of New York said, "In this situation, our role has been to serve as a trustee for certain Lehman Brothers bond offerings. We have no outstanding loans to Lehman."
Lehman said that as of May 31, it had assets of $639 billion and debt of $613 billion.
AFAIK, IANAL, a trustee can be held responsible for loses upon failing the Due Diligence, Misfeasance, and/or Malfeasance Tests.
Reckon it depends on how the Trust or Trustee Contract was written?
