Banks, Brokerages Prepare for Possible Lehman Bankruptcy, Start Net Trades

[marmar]

from Bloomberg:


Wall Street Prepares for Potential Lehman Bankruptcy Filing

By Craig Torres

Sept. 14 (Bloomberg) -- A group of banks and brokers began preparing for a potential Lehman Brothers Holdings Inc. bankruptcy filing today, addressing outstanding trades that the company has in over-the-counter derivatives markets.

Financial firms have started ``netting'' Lehman trades on credit, equity, interest-rate, foreign exchange, and commodity derivatives, according to a statement from the International Swaps and Derivatives Association e-mailed to Bloomberg News.

``ISDA confirms a netting trading session will take place between 2 p.m. and 4 p.m. New York time for over-the-counter derivatives,'' the ISDA said. ``Trades are contingent on a bankruptcy filing at or before 11:59 p.m. New York time, Sunday, Sept. 14, 2008. If there is no filing, the trades cease to exist.''

The announcement came after Barclays Plc, the U.K.'s third- biggest bank, said it abandoned talks to buy Lehman, contending it couldn't obtain guarantees to protect against potential losses at the U.S. securities firm.


http://www.bloomberg.com/apps/news?pid=20601087&sid=aeWvsWPyOd1c&refer=home

[angstlessk]

1. that is all gibberish to me...filing bankruptcy that I understand...

what it means I am unable to decipher????

[SoCalDem]

2. Our banking/investment/mortgage "industry" has been smoke & mirrors for YEARS now

I have no doubt that this was all due to implode...around feb 09, but it all started to unravel a bit too soon... So now it "belongs" to Bush...all of it..