Banks, hedge funds and others foolish enough to have insured
the debt of now-bankrupt Lehman Brothers by selling credit
default swaps must now pay the piper. Today is the deadline for
these insurers to make whole the counterparties to those
transactions, and early results from an auction of the swaps
indicates the cost will be at least 90.25 cents on the dollar
for each bond insured.
The auction is expected to be one...