US bankruptcy courts call for Lehman contract settlement
Investors still holding Lehman Brothers derivatives contracts are being pushed to terminate their positions by US bankruptcy courts. The order comes as part of an attempt to net existing gains for the Lehman estate before market movements risk pulling in-the-money trades underwater. The bank was estimated to have entered into 930,000 contracts including swaps, options and forwards, of which 733,000 have already been terminated voluntarily.
Expedient settlements are unlikely to provide any more
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