“PRODUCE THE NOTE”—LOOKING FOR THE BEANS SO YOU CAN COUNT THEM, REVISITED.

“PRODUCE THE NOTE”–LOOKING FOR THE BEANS SO YOU CAN COUNT THEM, REVISITED. I posted here about the difficulties that the people trying to recover assets for Lehman Brothers were having in locating those assets. Rights in a mortgage might have been chopped up into tranches (slices) and resold as parts of pools–not of mortgages–but of slices of mortgages. If Lehman owned a security based on one of those pools, unwinding what happened was taking a long time. Mary Jane showed me a Diane Sawyer video which approaches the problem from the other end. It points out that if you are facing foreclosure on your house, simply asking that the note be produced can cause long delays. I can’t find a way to link to the Diane Sawyer video, but here is another video which has the same message. I had speculated in the linked post that there were backoffice problems with these complicated assets.