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...A specialist in bonds, Lehman Brothers had been a pioneer in the new wave of mortgage- backed securities that buoyed Wall Street in the 2002–6 period....
...The bankruptcy of Lehman Brothers six months later finally made reducing systemic risks in credit derivatives a priority for Wall Street....
...Banks are hoarding cash in expectation of pay-outs on up to $400bn of defaulted credit derivatives linked to Lehman Brothers and other institutions, according to analysts and dealers....
...In the recent financial crisis, exactly this sort of spillover resulted from the failure of Lehman Brothers, which led to heightened pressures on other investment banks....
...The shock of the Lehman Brothers default has pushed this risk in the over-the-counter (OTC) derivatives markets to the top of agenda of policymakers and lawmakers....
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