Lehman's Radioactive Trade

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It's sort of odd that Lehman is "sitting on 500,000 pounds" of yellowcake uranium. Not because it is odd for firms not directly in the business to own an interest in the element. This is quite common actually as uranium futures are actually traded now. What is unusual is that Lehman would seem to have taken physical delivery- a scenario which would imply licensing and a host of regulatory headaches that seem silly when you can trade cash settled futures contracts if you really want to play the metal. In any case, Lehman acquired the stuff "under a matured commodities contract." (Read: The contract expired and they were forced to accept physical delivery). Now they are stuck with a pile of the stuff in Canada- where no one wants it, and in a down market.
Doh.
Lehman Sits on Bomb of Uranium Cake as Prices Slump [Bloomberg]

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