Investors and their accountants should scrutinize investment portfolios to see whether they contain Main Street Natural Gas Bonds that were guaranteed by Lehman Brothers Holdings, Inc. These bonds were not only guaranteed by Lehman Brothers, they were issued to finance the cost of acquiring a thirty-year supply of natural gas from Lehman Brothers Commodities Services Inc., a wholly-owned subsidiary of Lehman Brothers, as the designated Gas Supplier. Thus, the viability of these Lehman-backed bonds was directly dependent upon the viability of Lehman Brothers. In September 2008, Lehman Brothers filed for bankruptcy, and Lehman-guaranteed Main Street Natural Gas Bonds plummeted in value, but there were numerous red flags and storm warnings well before then.
Indeed, as early as June 2007, the financial press was full of alarming news about the financial condition and credit-worthiness of Lehman Brothers as a result of its toxic subprime debt exposure. By 2008, the cost “credit-default swaps” insuring against a Lehman default spiked, and there was more than enough evidence for industry professionals to conclude that Lehman-backed Main Street Natural Gas Bonds shut not be touched with the proverbial “ten foot pole” in almost any account. Similarly, brokers selling such bonds were clearly obligated to notify investors of the significant risks associated with the investment.
A similar situation exists for bonds and notes issued by other major subprime players, such as Citigroup, as well as bond insurers like AMBAC and MBIA.
If you own or owned one of the securities, you may have legal grounds to recover your losses. Securities professionals are legally obligated to use diligence to discover and disclose all important risks pertaining to any investment they recommend or purchase for a customer. That would certainly apply to investments like Lehman-guaranteed Main Street Natural Gas Bonds.
If you have questions or concerns about your investments losses, you should consult with an attorney experienced in such matters. Such a consultation is typically done at no charge.
Page Perry is an Atlanta-based law firm with over 125 years collective experience representing investors in securities related litigation and arbitration. While past results are not indicative of future success, Page Perry’s attorneys have recovered over $1,000,000 for clients on more than 30 occasions. Page Perry currently represents investors seeking to recover investment losses in Main Street Natural Gas Bonds. For further information, please contact us.