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eric pebble

Lehman Banksters Had Their Snouts In The Property Trough

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Lehman collapse: the drama of a mad 48 hours that will never fade

"...Oak Knoll, a 167-acre property in Oakland formerly owned by the US Navy.

Lehman had acquired the site in 2005 for $100m alongside its development partner SunCal, the largest land developer in California and a name now infamous among the bank's former staff. The plan was to build 900 homes on the site."

/..."this particular SunCal project was just a wrinkle in Lehman's involvement with the Californian property company. Their flagship project stood 120 miles north-east of Los Angeles on the dusty flatlands of Bakersfield.

Here, across 2,000 acres, SunCal planned to develop 6,000 homes built around a golf course and boating lake. Lehman, as both lender and equity participant, initially invested $150m in 2005. They called it McAllister Ranch.

It turned out to be a property developer's pipedream. By June 2008, the ranch had become a major casualty of California's overheated real estate market. The boating lake had turned to weeds and dust. So too had Lehman's investment. Worse, by then its loan on this project had spiralled to $350m. Even worse, insiders were putting Lehman's total exposure to SunCal at close to $2bn.

Oak Knoll. McAllister Ranch. Each was a microcosm of the real story. Lehman's commercial property book was out of control. It had become an $80bn sub-prime liability based on fantasy real estate projects or lending to a class of borrower popularly known as a Ninjas – no income, no job, no assets.

Lehman had built a business originating these loans, packaging them up and selling them into the market as the now-infamous collaterised debt obligations or securitisations. They had turned the bank into a ticking timebomb."

All these C@NTS and all the other C@NTS should be in jail for the rest of their lives....

Read the whole incredible thing here - http://www.telegraph.co.uk/finance/finance...never-fade.html

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Lehman collapse: the drama of a mad 48 hours that will never fade

"...Oak Knoll, a 167-acre property in Oakland formerly owned by the US Navy.

Lehman had acquired the site in 2005 for $100m alongside its development partner SunCal, the largest land developer in California and a name now infamous among the bank's former staff. The plan was to build 900 homes on the site."

/..."this particular SunCal project was just a wrinkle in Lehman's involvement with the Californian property company. Their flagship project stood 120 miles north-east of Los Angeles on the dusty flatlands of Bakersfield.

Here, across 2,000 acres, SunCal planned to develop 6,000 homes built around a golf course and boating lake. Lehman, as both lender and equity participant, initially invested $150m in 2005. They called it McAllister Ranch.

It turned out to be a property developer's pipedream. By June 2008, the ranch had become a major casualty of California's overheated real estate market. The boating lake had turned to weeds and dust. So too had Lehman's investment. Worse, by then its loan on this project had spiralled to $350m. Even worse, insiders were putting Lehman's total exposure to SunCal at close to $2bn.

Oak Knoll. McAllister Ranch. Each was a microcosm of the real story. Lehman's commercial property book was out of control. It had become an $80bn sub-prime liability based on fantasy real estate projects or lending to a class of borrower popularly known as a Ninjas – no income, no job, no assets.

Lehman had built a business originating these loans, packaging them up and selling them into the market as the now-infamous collaterised debt obligations or securitisations. They had turned the bank into a ticking timebomb."

All these C@NTS and all the other C@NTS should be in jail for the rest of their lives....

Read the whole incredible thing here - http://www.telegraph.co.uk/finance/finance...never-fade.html

Eric

Nice post-I know the area very well. However WTF are you doing still up? I am in the US but you should be in bed. I'll tell your Mum.

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Lehman collapse: the drama of a mad 48 hours that will never fade

"...Oak Knoll, a 167-acre property in Oakland formerly owned by the US Navy.

Lehman had acquired the site in 2005 for $100m alongside its development partner SunCal, the largest land developer in California and a name now infamous among the bank's former staff. The plan was to build 900 homes on the site."

/..."this particular SunCal project was just a wrinkle in Lehman's involvement with the Californian property company. Their flagship project stood 120 miles north-east of Los Angeles on the dusty flatlands of Bakersfield.

Here, across 2,000 acres, SunCal planned to develop 6,000 homes built around a golf course and boating lake. Lehman, as both lender and equity participant, initially invested $150m in 2005. They called it McAllister Ranch.

It turned out to be a property developer's pipedream. By June 2008, the ranch had become a major casualty of California's overheated real estate market. The boating lake had turned to weeds and dust. So too had Lehman's investment. Worse, by then its loan on this project had spiralled to $350m. Even worse, insiders were putting Lehman's total exposure to SunCal at close to $2bn.

Oak Knoll. McAllister Ranch. Each was a microcosm of the real story. Lehman's commercial property book was out of control. It had become an $80bn sub-prime liability based on fantasy real estate projects or lending to a class of borrower popularly known as a Ninjas – no income, no job, no assets.

Lehman had built a business originating these loans, packaging them up and selling them into the market as the now-infamous collaterised debt obligations or securitisations. They had turned the bank into a ticking timebomb."

All these C@NTS and all the other C@NTS should be in jail for the rest of their lives....

Read the whole incredible thing here - http://www.telegraph.co.uk/finance/finance...never-fade.html

True, but if they'de been right and prices had gone up for another 2 years before collapsing, they'de has won.

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True, but if they'de been right and prices had gone up for another 2 years before collapsing, they'de has won.

True, but Russian roulette is perfectly safe until you reach the chamber with the bullet.

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True, but Russian roulette is perfectly safe until you reach the chamber with the bullet.

Yep it's a perfectly safe game until you get unlucky and blow your brains out.

Lehmans clearly believed they'd rigged the game and prices could only go up.

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