Lehman Sitting On $20M Worth of Yellowcake: Report

Bank purchased uranium before it collapsed

By JOHN P. WISE
|  Wednesday, Apr 15, 2009  |  Updated 10:04 AM EDT
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Lehman Sitting On $20M Worth of Yellowcake: Report

Lehman Brothers is stuck with 500,000 pounds of uranium yellowcake. Maybe this man should call North Korea.

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Talk about toxic assets.

They say a diversified portfolio is best for the long run, but uranium yellowcake?

That's what Lehman Brothers can't seem to get rid of, according to the New York Post. The bankrupt investment firm has 500,000 pounds of the ore and doesn't appear to have any interested buyers, the Post reported. That's enough uranium to make a nuclear bomb, according to Bloomberg.com.

Lehman acquired the radioactive supply before the storied bank collapsed last year under the weight of subprime derivatives.  But despite its desperate state, the bank is holding the yellowcake in order to sell it at a better price.

The belly-up bank has about $200 billion in unsecured liabilities debt, and the uranium could bring in about $20 million at the current price of about $40 per pound, Bloomberg reported.

But don't expect the yellowcake to show up on Craigslist anytime soon.

"We are not planning to sell at a price that's not advantageous," the employee told the Post.
 

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