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AIG posts 500 million pound collateral on Canary Wharf leases
Marketwatch ^
| March 26, 2009 5:25 a.m. EDT
| Jonathan Buck
Posted on 03/26/2009 1:23:56 PM PDT by Ernest_at_the_Beach
LONDON (MarketWatch) -- American International Group Inc has been forced to post more than GBP500 million as collateral to cover possible defaults on rental payments on properties in Canary Wharf leased by Lehman Brothers Holdings Inc. and Citigroup Inc. The move was triggered by a fall in the credit rating of AIG, which provides securitization to insure the leases.
AIG posted cash collateral of approximately GBP224 million to cover Lehman's lease on 25-30 Bank Street and GBP276.3 million to cover Citigroup's rental obligations at 33 Canada Square.
There is no suggestion that either tenant is likely to default, even though Lehman entered administration Sept. 15.
(Excerpt) Read more at marketwatch.com ...
TOPICS: Business/Economy; Extended News; Government; News/Current Events
KEYWORDS: aig; bailoutnation; lehmanbrothers; obama
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To: joygrace; TigerLikesRooster; rabscuttle385; abb; yankeedame; jpsb; dennisw; dfwgator; Vet_6780; ...
Wonder if anyone say this coming...that is a good sized pile of cash.
To: Ernest_at_the_Beach
wow... taxpayer dollars at work.
where is ACORN on this?? Thats a lot more than the bonuses
3
posted on
03/26/2009 1:27:13 PM PDT
by
GeronL
(http://tyrannysentinel.blogspot.com)
To: Ernest_at_the_Beach
anyone SAW this coming!
To: GeronL
I bet there is a lot more of this kind of stuff...
To: Ernest_at_the_Beach
Wonder where that money is coming from...
6
posted on
03/26/2009 1:31:58 PM PDT
by
PubliusMM
(RKBA; a matter of fact, not opinion. 01-20-2013: Change we can look forward to.)
To: Ernest_at_the_Beach
how much “bailout” money is leaving the country??
7
posted on
03/26/2009 1:33:03 PM PDT
by
GeronL
(http://tyrannysentinel.blogspot.com)
To: Ernest_at_the_Beach
I would believe it as something one could have foreseen within AIG circles. “H” long established companies with long established credit lines are being forced to pay up front for product to sell, or to pay COD these days. A bit of a clue there as to trust in the market.
One might think it time for AIG to consider a low rent district for their offices.
8
posted on
03/26/2009 1:35:50 PM PDT
by
rockinqsranch
(Dems, Libs, Socialists...Call 'em What you Will, They ALL have Fairies Living In Their Trees.)
To: rockinqsranch
This is not money for their offices,...it is some kind of insurance for officies for Lehman Brothers...which is Bankrupt...and Citigroup..
At least as I read it.
To: PubliusMM
To: Ernest_at_the_Beach
Correct.
It seems that remarkably few people around here know what "underwriting" is...
11
posted on
03/26/2009 1:46:30 PM PDT
by
JasonC
To: Ernest_at_the_Beach
At Bank Street, where Lehman leases more than a million square feet of office spaceThats a lot of cubical space!
12
posted on
03/26/2009 1:47:19 PM PDT
by
OCC
To: Ernest_at_the_Beach
Hardly. Collateral isn't a cost. AIG has investments, in bonds or whatever, and it simply pledges some of those as collateral, that Lehman or Citi will pay their leases as due. AIG still owns those investments, and still earns all the interest on them. It is also collecting its underwriting fees for guaranteeing the payments if either Lehman or Citi break their leases. None of this is a cost.
13
posted on
03/26/2009 1:49:03 PM PDT
by
JasonC
To: JasonC
So Lehman is still paying their lease?
To: Ernest_at_the_Beach
OK...Gotcha. I have been scanning as I have to get out of here for a few hours, so I’ll look at this again later as I should have in the first place LOL.
Offline for a few.
15
posted on
03/26/2009 1:57:14 PM PDT
by
rockinqsranch
(Dems, Libs, Socialists...Call 'em What you Will, They ALL have Fairies Living In Their Trees.)
To: Ernest_at_the_Beach
Yes of course. The brokerage division was sold to Barclay's.
16
posted on
03/26/2009 1:58:19 PM PDT
by
JasonC
To: Ernest_at_the_Beach
Hmmm....
Lehman Brothers Holdings Inc. has filed for bankruptcy protection in the U.S.
*********************************************
Lehman Brothers Holdings Inc. has filed for bankruptcy protection in the U.S.
SEE BELOW FOR MORE INFORMATION ON LEHMAN BROTHERS HOLDINGS INC. AND THE DISPOSITION OF BUSINESSES AND
SUBSIDIARIES OF LEHMAN BROTHERS HOLDINGS INC.
Barclays acquires Lehman Brothers, North America
|
|
Lehman Brothers Holdings Inc.
|
|
Information on other former Lehman Brothers businesses
|
For information regarding Barclays Investment Banking and Capital Markets, please visit www.barcap.com
For information regarding Barclays Wealth, please visit www.barclayswealthamericas.com
|
|
For information regarding the Chapter 11 Filing, please visit www.lehmanbrothersestate.com
|
|
For information related to Neuberger Berman, please visit www.nb.com
For inquiries related to companies in the UK and Europe in administration, please contact PricewaterhouseCoopers LLP at www.pwc.co.uk
For information related to the acquisition of Lehman Brothers Asia-Pacific business, please view Nomura press release or visit www.nomura.com
For information related to companies in Hong Kong in administration, please view KPMG News or contact KPMG at http://www.kpmg.com.hk
|
The information and links above are provided solely as a convenience to assist users who may be seeking information on Lehman Brothers Holdings Inc. or former Lehman Brothers businesses and operations. The owner of this website does not endorse nor is responsible for any content, information or other related materials that maybe accessed through the links above or has been provided by unrelated parties.
To: JasonC
Just looking thru info...see #17...wonder if Barclays is occupying the space in London or whether it is Price Water House....
To: JasonC; Ernest_at_the_Beach
The WSJ reporting that the collateral on Lehman's lease is held in AIG bank accounts at the London branch of the Bank of New York Mellon. According to a previous filing, AIG Financial Products Corp. supplied the securitization of the leases through credit-default swaps.
Collateral isn't a cost but the thing that caused the need to post it (a downgrade in credit ratings) can indeed be costly as it may lead to reduced credit availability. In the case of AIG, however, that shouldn't be a problem as any slack will simply be picked up by you and me.
To: Ernest_at_the_Beach; AdmSmith; Berosus; Convert from ECUSA; dervish; Fred Nerks; george76; ...
One sidelight question — Canary Wharf... how do they keep the canaries from flyin’ off before they get ‘em unloaded?
Thanks Ernest.
20
posted on
03/26/2009 2:58:18 PM PDT
by
SunkenCiv
(https://secure.freerepublic.com/donate/____________________ Profile updated Monday, January 12, 2009)
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