Posted tagged ‘Bankrupt’  Craziest Weekend in Wall St. History:
Questions Abound!  September 15, 2008  What a weekend. I’m sure
Wall St. feels a bit brutalized by the events. Now, here are my
questions…  1. Doesn’t Lehman have to be involved in moving
trades that are facing them? I simply do not understand what the
“Lehman Risk Reduction Trading Session” is all about. Indeed, if
one looks at the I.S.D.A. Novation Protocol Guide, it’s the case
that the “Transferor” (the “Stepping out party”) needs to agree
on certain terms. For example:  Negotiating a proposed Novation
Transaction:  The Transferor will contact the Transferee to
agree a price [sic] for the Novation Transaction.  Seems like
“negotiating” and “to agree” seem to indicate the transferor has
some decisions and veto power. Also, let’s be honest, all the
banks sitting at the table for this situation showed that they
aren’t willing to lend a helping hand to their competitors and
are acting in self-interest while potentially risking the entire
system’s