Posted on April 9th, 2008 in Daily Stock Market / Economic News - The Real Story
Man, this pisses me off. This is just ugly…especially on LEH part. If not for their $600
mil questionable ‘income’ off deriv losses and likely moving close to $600 mil
to L3, LEH may not be around right now. Goldman, the ‘cleanest of the bunch’ would probably be the dirtiest if not for accounting tricks. This is as fragile of a system as it
gets. These crooks are still monkeying with the numbers and everyone, including the Fed is turning a blind eye. -Best, Mr Mortgage
or hard-to-value corporate loans, residential and commercial mortgage-related
securities and other instruments, rose from the last quarter. Goldman Sachs said
Level 3 assets rose by 39% to $82.3 billion, or 13% of total assets at fair value, at
the end of February from $54.7 billion, or 10% of total assets at fair value, at
the end of November. Morgan Stanley said Level 3 assets rose to $78.2 billion at
the end of February from $73.7 billion at the end of November, in both cases
representing about 15% of total assets measured at fair value.
Brothers (LEH) disclosed in a 10-K filing that Level 3 assets, or hard-to-value
corporate loans, residential and commercial mortgage-backed securities and other
instruments, rose to $42.51 billion, or 14% of total assets at fair value at the
end of February, from $41.98 billion, or 14.4% of total assets at fair value at
the end of November.
MORE LEHMAN NEWS – This company is in real trouble. Now is not a good time to be dumping commercial real estate.
Archstone-Smith sells properties to pay debt-WSJ…Last year Tishman Speyer Properties and Lehman
Brothers Holdings (LEH) bought apartment owner Archstone-Smith, but no one said
they’d have to sell off parts of Archstone to cover its debt. Now they are,
reports the Wall Street Journal. Archstone has about $16B of debt that was used
to finance the takeover.