It looks like you're using an Ad Blocker.
Please white-list or disable AboveTopSecret.com in your ad-blocking tool.
Some features of ATS will be disabled while you continue to use an ad-blocker.
(visit the link for the full news article)
The collapse of Lehman Brosmay force sellers of credit-default swaps including Pacific Investment Management Co. to make the biggest ever payout in the $55 trillion market.
An auction to be held today will determine the size of the payments buyers of default protection can claim after New York based Lehman filed for the largest bankruptcy with $618 billion in debt.
Sellers of protection on bankrupt Lehman Brothers will have to pay out 91.375 percent of the insurance they sold, based on the results of an auction on Friday to determine the value of the credit default swaps.
The final value of the contracts, which are estimated to be around $400 billion in volume, will be 8.625 percent, according to results published by auction administrators Creditex and Markit.
Originally posted by SeekingAlpha
Look at the censorship regarding this topic. I cannot believe this is not the #1 story on CNBC. Over $300 billion in payouts for Lehman is a crippling blow to the global market.
It's a damn shame this story is being censored by the mainstream media.