Monday, February 9, 2009

Who wins? The lawyers, of course!

Perhaps that is an overstatement. But it is the first thing that came to mind when I read this story in the WSJ about Lehman's real estate holdings.

Having been involved with a few deals with Lehman, I was shocked when the company went down -- and the government let it. But that was then and this is now. There's a lot of negotiating and foreclosing and lawyering to be done with a portfolio this size. And in some cases money is even being thrown into deals that make (and made?) sense in order to preserve the asset, which I think is a good idea under the right circumstances.

Now I am playing wait and see on the so-called stimulus and whether it will have any impact on jump-starting our market. Only time -- which a lot of people don't have much of with so many loans coming due -- will tell.