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Lehman Brothers has enough uranium to build a nuclear bomb

Lehman Brothers has enough uranium to build a nuclear bomb

Bloomberg reports that the holding company for collapsed New York investment bank Lehman Brothers is hanging on to a valuable asset until prices rebound, to help pay off the company’s creditors.

The asset? Uranium. How much? Enough for a bomb, if you knew how to do it.

Lehman, once the fourth-largest investment bank, has an estimated $200 billion in unsecured liabilities left to pay. The uranium, which may be as much as 500,000 pounds, might fetch $20 million at today’s prices of about $40.50 per pound, said traders who asked not to be named because of the confidential nature of the data. Marsal said the traders’ estimate of Lehman’s uranium holding is “reasonable,” while declining to be more specific….

Lehman “tested” the uranium market after its bankruptcy filing in an effort to raise cash, pulling back after it did because “everyone was low balling,” Marsal said. With $10 billion in the till today from other asset sales, Lehman isn’t in a hurry any longer to sell uranium, he said.

“We plan on gradually selling this material over the next two years,” he said. “We are not dumping this on the market and have no fire-sale mentality.”

Goodness.