Lehman Initial Swap Auction Indicates Larger Payout

HAPPY LEHMAN CREDIT DEFAULT RECKONING DAY!

The significance of this event in terms of dollars and losses is baffling as it is unimaginably far-reaching. No one knows the extent of potential damages here, because the credit default market is completely unregulated and unmonitored. It could be a $50 trillion problem or a $500 trillion problem. This is supposed to be 'insurance' you can't actually call insurance. If it were actually called insurance, then investor rules and protection would be in play. But if it's just stop-loss protection, well, it's just buyer beware! It was a great product to sell... very little paperwork, and no pesky distractions like oversight and accountability. Unfortunately, some people are now looking for the benefits for which they already paid (seeing how a big chunk of their retirement income just boiled off into space and all).

Now where did I put that darn wallet...?


Lehman Initial Swap Auction Indicates Larger Payout
By Shannon D. Harrington and Neil Unmack
Oct. 10 (Bloomberg) -- Sellers of credit-default protection on bankrupt Lehman Brothers Holdings Inc. would be forced to pay holders 90.25 cents on the dollar under initial results of an auction, setting up the biggest-ever payout in the $55 trillion market.

http://http//www.bloomberg.com/apps/news?pid=20601087&refer=patrick.net&sid=aiMj9KoKg_CM