Wall Street Manna

An irreverent look at Wall Street

Sunday, September 21, 2008

Lehman assets get re-adjusted downward

On Friday, there were a number of changes to the terms of the sale to Barclays. The originally agreed total sale price of $1.75 billion could be lowered by $100 million to $200 million. The British bank will take on $47.4 billion in assets and $45.5 billion in liabilities, instead of $72 billion in assets and $68 billion in liabilities. The drop in the assets reflects the decline in the value of Lehman securities during the past week.

The purchase price was lowered because of lower appraisals of real estate in New Jersey.
http://online.wsj.com/article/SB122188679079059925.html

Has to give people comfort on the value of these Level 3 assets!

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