Not only couldn't they have done it, they wouldn't act that way in any case. Just think, suppose RAS somehow generated $190M of free cash the last two quarters (which they didn't), what would they do with the money? Even if it was necessary, and possible, to buy foreclosed real estate out of the CDO's, it would have to be at market price by definition. Would they then sit on that real estate? To generate rents on all-equity owned real estate? Or would they monetize it as quickly as possible to pay down upcoming maturities, to buy back notes and stock at huge discounts, and to keep in reserve in case further support was needed for the weaker CDO?
There's something wrong with that picture Ghost. RAS's real estate holdings were $311M at Q3 2008 and $501M at Q1 2009. There is no way that RAS had $190M of unrestricted cash money to buy that amount of foreclosed real estate out of the CDO's over the last 2 quarters, it just couldn't have happened. Most of that real estate must represent foreclosed property still in the CDO's. I think the language used in the supporting materials for the Q in this regard was inartfully chosen.
What, the accounting change for Taberna? First, it's just that, GAAP crap accounting, nothing fundamental happened, and second, Taberna is dead anyway, probably all of them. Just some minor fees and such left, RAS will never participate in those CDO's again, they're too far gone.
Forget Taberna, that's a side show, RAS in its present form consists of the two commercial loan CDO's with a smattering of fees from the rest of the zombies. That's it, nothing else matters. It's almost identical to RSO, except not making as much cash money and closer to the cliff on the triggers.