caused by LBHI's fraud in inducing Strickler to stay on with LBI while the firm engaged in the infamous Repo 105 practice, in which LBI removed from its books the liabilities to repurchase assets that had been pledged to obtain cash.
Even if the court eventually allows Prudential to seize the collateral assets, it is obligated to give TVT Catalog Enterprises a chance to repurchase those assets before trying to sell them elsewhere, according to the loan contract filed as an exhibit in the case.
Under it, the indictment says, funds known as LJM1 and LJM2, which were controlled by Mr. Fastow, agreed to purchase assets from Enron but with an upfront provision that the company would repurchase the assets in the future at a profit to the funds.
She also said that Enron wanted a buyer who would give it an option to repurchase the assets at a later date, as she did with the wind projects.
Later, General Augusto Pinochet's government excluded the Luksics from repurchasing the assets because Andrnico Sr .was considered "tainted" by his dealings with the Allende regime.
So investors need to think about whether they want to sell off investments, such as Citigroup and Bank of America, as they could rise or fall a great deal in the month when you can't repurchase these assets.
Hundreds of public companies have shed underperforming divisions, sold assets not essential to operations, repurchased stock and increased leverage, closed uneconomic plants and offices.
Because these assets already exist, they can be purchased (and repurchased) without adding directly to GDP or straining the economy's capacity to produce new goods and services.
Much of this exposure comes from mortgage-backed securities taken over by the government during the crisis and subsequently repurchased by AIG".We have a detailed understanding of these assets," says Mr Benmosche.
Last year, the financier urged Time Warner to sell its cable assets and repurchase $20 billion in shares to unlock value for shareholders, while also cutting costs by $500 million in 2007 and install two independent directors to the board with Icahn consulting.
