Lehman Brothers (LEH)

Re: Lehman LEH

Postby -dol- » Tue Sep 16, 2008 4:02 pm

This Barclay's got very good appetite, considering that it is one of those that are potentially short of capital [others include UBS :( :!: ]. I wonder if they have informed their sugar daddy, tamadesek :?: :!: :mrgreen:

I think I hear the vague sounds of ka-ching at the ERP tills...
It's not the bottom if you are not crying.

Disclaimer: This is not investment advice! Please do your own research and due diligence.
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Lehman LEH

Postby ishak » Tue Sep 16, 2008 8:34 pm

Lehman needs MAS' nod before paying 3rd party
BT, 16 Sep 2008

In its second statement issued on Tuesday, the Monetary Authority of Singapore (MAS) said it has ordered Lehman entities in Singapore to seek the central bank's approval before paying out any of their funds to third parties.

'To ensure that Lehman Brothers Pte Ltd and Lehman Brothers Singapore Pte Ltd continue to meet their financial requirements, MAS has issued a direction to the Lehman entities in Singapore to seek MAS' approval before paying out any of their own funds to third parties,' the regulator said.


It also said that the Singapore Exchange (SGX) has suspended Lehman Brothers Pte Ltd from taking on new securities and derivatives positions with immediate effect and is facilitating the orderly transfer of customers' derivatives positions to other brokers.


'SGX confirms that, at present, Lehman Brothers Pte Ltd is meeting its financial obligations to SGX's securities and derivatives clearing houses,' the MAS said.

MAS said it will continue to monitor the situation closely together with SGX.

Lehman filed for bankruptcy protection on Monday, becoming the highest-profile casualty of the global credit crisis.
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Re: Lehman LEH

Postby kennynah » Tue Sep 16, 2008 8:36 pm

so ishak, last night GR was looking for you...u went mia from this forum on such an eventful night...

how was your meeting with yusof ? 8-)
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Lehman LEH

Postby ishak » Tue Sep 16, 2008 8:47 pm

In Singapore's Suntec Tower Five, the waiting begins
Lehman staffers await fate; MAS says it's monitoring markets closely

BT, 16 Sep 2008

Shell-shocked Lehman Brothers employees in Suntec Tower Five were trying to put on a brave face yesterday, though none knew their fate following news that their company had filed for bankruptcy protection in the US.

Although many Lehman workers continued going to the office and answered the phone when BT called after 5pm, it was clear that they knew nothing more than what they could read from the Internet.

Lehman ramped up operations in Singapore since last year, employing 270 people, up from 60 two years ago. But Hong Kong continues to be pretty much the head office for Asia, and yesterday it was a public holiday there.

'We still have a morning meeting tomorrow (with Hong Kong),' said a managing director here. Asked what was happening in the office, he said: 'Things have a tendency to follow through. Clients won't want to trade with you for obvious reasons.'

Asked what he might do, he said: 'No idea at the moment.'

One source said that the meeting today will be to hear from human resources on a payout.

Lehman employs about 3,000 people in Asia, excluding its India back office.

In a statement from New York, Lehman said that none of its subsidiaries will be immediately affected by the parent's bankruptcy filing and will continue to operate as usual.

Lehman said that it is still in talks to sell parts of its business, including its Neuberger Berman investment management division.

In conjunction with the bankruptcy filing, Lehman said that it intends to file 'a variety of first day motions that will allow it to continue to manage operations in the ordinary course. Those motions include requests to make wage and salary payments and continue other benefits to its employees'.

The Monetary Authority of Singapore said last night it is 'closely monitoring developments in the global financial markets and their impact on financial stability'.

'Domestic money and foreign exchange markets are continuing to function in an orderly fashion,' a MAS spokeswoman said.

'MAS remains in close contact with the banks, the Singapore Exchange and financial institutions to monitor developments and to see to the orderly functioning of the markets.'

The Singapore Exchange confirmed yesterday that Lehman was meeting its financial obligations as usual.

DBS Bank spokeswoman Karen Ngui said DBS's direct exposure to Lehman is insignificant. 'On the retail front, some investment products DBS sold in the past, such as High Notes 2 and High Notes 5, have Lehman exposure. However, the global economic situation has changed dramatically and this has impacted the value of these investments,' she said.

'Our priority now is to ensure that our customers are well-informed of the latest market developments.'

OCBC Bank said last night that it is monitoring developments in the US and the global financial markets.


'We have no announcement to make regarding Lehman at this point,' said OCBC spokeswoman Koh Ching Ching.

In February this year, OCBC was joint lead-arranger for Lehman Brothers' $250 million bond issue, which was sold to a wide range of investors - predominantly Singapore domestic buyers.

A United Overseas Bank spokeswoman said that the bank has little exposure to Lehman Brothers. 'The bank's total exposure to Lehman is very small and insignificant,' she said.

Lehman's Singapore office is its centre for commodities and foreign exchange trading in the Asia-Pacific. It also performs other functions such as fund distribution for Lehman's asset management arm and prime broking services for hedge funds in South-east Asia.

Just a year ago, the firm converted its branch office here into a full-fledged local subsidiary.

Hi K, was out at a party last night. Was watching the news though and calming relatives not to rush to AIA.
The dominos falling rather fast, quite scary. :(
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Re: Lehman LEH

Postby kennynah » Tue Sep 16, 2008 8:50 pm

lucky, my wife didnt join LEH when she had an opportunity previously... this LEH is a ham ka chan...they say in canto...although i don understand the full meaning, except..it sounds very bad...
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Re: Lehman LEH

Postby ishak » Tue Sep 16, 2008 8:52 pm

People losing jobs is not a good thing, hope these people have some form of saving when the going was good.
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Lehman LEH

Postby ishak » Tue Sep 16, 2008 11:02 pm

S'pore, HK suspend Lehman from taking new orders
BT, 16 Sep 2008

Singapore Exchange Limited (SGX) on Tuesday suspended Lehman Brothers Pte Ltd (LBPL) from taking on new securities and derivatives positions.


SGX said it was facilitating the 'orderly transfer' of customers' derivatives positions from LBPL to other brokers.

It added that LBPL is meeting their financial obligations to SGX's securities and derivatives clearing houses.

'We will continue to monitor the situation and maintain the orderly function of the markets,' the SGX said in a statement.

In Hong Kong, the investment bank that has filed for bankruptcy protection in the U.S. said operations have been halted at Lehman Brothers Asia Ltd., Lehman Brothers Securities Asia Ltd. and Lehman Brothers Futures Asia Ltd.

The operations stopped include trading on the city's securities and futures exchanges, it said.

The move comes after 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 in Manhattan yesterday.

Lehman Brothers Japan Inc. and another local subsidiary filed for bankruptcy in Tokyo District Court today with about 4 trillion yen (US$38 billion) in combined liabilities.

Earlier on Tuesday, Hong Kong's Securities and Futures Commission had approved restrictions on the operations of all four of the Lehman units.

The curbs are being put into place to 'preserve the assets of the companies and their clients, and to protect the interests of these clients and the investing public,' the HK regulator said in an e-mailed statement.

The SFC is restricting Lehman Brothers Asia from dealing with clients and its assets, and introducing constraints with some exceptions on the other three, the statement said.

Lehman Brothers Securities Asia will be allowed to deliver securities to its clients for outstanding trades in the last two days upon cash payment, the HK regulator said.

Hong Kong's securities clearing company declared the unit 'a defaulter', and the stock exchange halted its trading in the securities and stock options markets before the morning session
, the two's parent company Hong Kong Exchanges & Clearing Ltd. said in a statement.

Lehman Brothers Futures Asia will be permitted to contact clients and 'conduct an orderly close out of their outstanding positions by the end of today,' SFCsaid.

Lehman Brothers Asset Management Asia Ltd. is allowed to carry out normal business activities except paying out any of its own funds.

The four units have a combined 2,000 to 3,000 clients, the majority of which are institutions, according to SFC spokesman Jonathan Li.
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Re: Lehman LEH

Postby ishak » Wed Sep 17, 2008 12:26 pm

Investors fret over Lehman's Minibonds
Distributors waiting for unwinding instructions from bankrupt US bank

BT, 17 Sep 2008

Events that have unfolded in the United States over the past few days could hurt some investors here. Those who had bought Minibond notes worth almost $500 million, arranged by Lehman Brothers over the last two years, were left in the dark yesterday as to how much they might recover as there is no news yet from the bankrupt US bank.

Unlike what their name suggests, Minibonds are not bonds but a derivative product that offers investors little protection.

Meanwhile, there may be better news for those that invested in the All Weather Booster Notes arranged by Merrill Lynch that were sold earlier this month, but have not been issued yet. BT understands that the Monetary Authority of Singapore (MAS) might look at giving these investors an option to withdraw from the deal. Merrill itself has just been sold to Bank of America.

Investors who bought Minibonds are more likely to get burnt. A fair number could be retail investors given that the minimum amount sold was $5,000. The Minibond notes were sold over the last two years under series 2 to 10, the latest of which was just last month.

One retail investor who sunk $5,000 into Minibond series 3 said: 'I should have bought a watch.' Another who had bought $2 million worth was more sanguine, saying that he will 'move on'.

According to one broker, the earlier Minibond series was quite popular because they offered as much as 5 per cent dividend, and were invested mainly in high yielding collateralised debt obligations (CDOs), which only got a bad name after the US sub-prime mortgage crisis broke in the middle of 2007.

Distributors of Minibonds which include local and foreign banks, brokerages and Hong Leong Finance were getting anxious calls from clients yesterday but could not shed much light as they had yet to hear from Lehman.

Said a CIMB-GK Securities executive: 'I'm also waiting for news - I didn't invest but some of my friends invested in it.'

Carol Fong, chief executive of CIMB-GK Securities, said that the firm was in touch with Lehman Brothers in Hong Kong to assist clients with their enquiries on the Minibonds.

'In response to enquiries from customers, OCBC Securities has advised them to wait for further news from Lehman Brothers on how the investment bank will unwind the transactions and pay noteholders the credit event redemption amount,' said Koh Ching Ching, OCBC Bank spokeswoman.

'We are currently taking legal advice and will keep our clients updated,' said Ajay Mathur, RBS, head of retail banking.

A United Overseas Bank spokeswoman said that the bank is taking a proactive approach in updating clients on the latest developments. 'I've been explaining the whole day to all walks of life,' said Daniel Seah, UOB Kay Hian senior officer. He said that there was value in the underlying assets which were invested by Minibond, a company set up to issue the notes.

Minibond has to sell these assets. After deducting the costs involved in the termination, what is left will be paid back to investors, he said. 'The main thing is, how much investors can get back depends on the open market value of the assets.'

The problem lies in the value of the assets, such as CDOs which have become tainted by negative publicity, although not all are associated with sub-prime mortgages.

The latest Minibond series 9 and 10 which were sold last month focused on safer assets such as bonds, said Mr Seah. The underlying assets in series 9 and 10 consist of senior secured and unsecured securities issued or guaranteed by major US and European banks, according to the document lodged with MAS.

The document also said that Minibond has issued seven series of notes under the programme, with the outstanding amount at about $482 million.

As for the All Weather Booster Notes arranged by Merrill Lynch, Mr Seah said that he understands that investors could be offered a choice of backing out if they want to. Distributors may then refund their clients.

The sale of the All Weather Booster Notes closed on Sept 12 and the money collected from investors is currently held by the distributors - ABN Amro Bank, AmFraser Securities, CIMB GK, Citibank, DBS Vickers, DMG & Partners, OCBC Securities, Standard Chartered Bank and UOB Kay Hian. The notes will only be issued on Sept 20.
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Lehman LEH

Postby ishak » Wed Sep 17, 2008 12:34 pm

Barclays to buy some Lehman assets
Reuters, 17 Sep 2008

Barclays agreed to buy bankrupt Lehman Brothers Holdings's main investment banking assets for about US$2 billion, a source familiar with the situation said on Tuesday.

The deal, which is expected to be announced later on Tuesday or early Wednesday, would unite two big debt trading houses and could stanch the flow of customers fleeing Lehman in the wake of the largest bankruptcy in history.

The deal would include Lehman's core US broker-dealer business, including equity, fixed income, M&A advisory and other assets, the source said.

Barclays won't be buying any of Lehman's real estate, real-estate-backed securities, derivatives positions or over-the-counter trades, The Wall Street Journal reported.

As many as 9,000 Lehman employees would find jobs with the UK bank, the newspaper reported on its website.

The deal will also not include Lehman's investment management division, which includes fund manager Neuberger Berman. On Monday, a person familiar with the situation said a sale of that unit was also close to being announced.

Private equity firms Bain Capital, Hellman & Friedman and Clayton, Dubilier and Rice have placed bids for the unit, the person said. Lehman had planned to sell a majority stake in the investment management unit before filing for bankruptcy, but is now selling the whole unit.

Earlier on Tuesday, Barclays had confirmed it was in talks to buy some of Lehman's assets on terms that would need to be attractive to its shareholders.

Lehman could not be immediately reached for comment.

Barclays was involved in frantic talks over the weekend to rescue Lehman, but quit after US authorities would not guarantee the US investment bank's trading obligations.

That prompted Lehman's New York-based holding company to file for Chapter 11 bankruptcy protection, sending shockwaves throughout world financial markets as a year-long credit crunch claimed another, bigger victim.

One of the bank's top 15 investors, who declined to be named, questioned the merit of pursuing Lehman in the current climate, however.

'Does Barclays not have better things to do with its capital? I don't think it's an environment for banking people to be brave,' he said.

Barclays shares closed down 2.5 per cent at 305.1 pence. The DJ Stoxx European bank index fell 4.3 per cent.

Most European bank shares were hit for a second day by fears of more collapses and higher borrowing costs, although US banks surged on hopes for a solution to American International Group's liquidity crunch.
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Re: Lehman LEH

Postby iam802 » Thu Sep 18, 2008 9:03 am

Thanks to tinpeng for the report.

Extracted from the report on Lehman's exposure (long list):

==
DBS Group Direct exposure is 'insignificant.'Dexia EUR500mn unsecured holding company bonds. Also has collateralised exposures of EUR1.5bn in repo transactions (notional value) and a EUR282mn
==
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2. The trend will END but I don't know WHEN.

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