Launches & Closures Hedge Funds

Unraveling Lehman's tangled web

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After the broker/dealer’s bankruptcy, fund managers are learning about counterparty risk – the hard way.

After the broker/dealer's bankruptcy, fund managers are learning about counterparty risk - the hard way

By Carolyn Sargent

With strong returns and a ballooning asset base, Amber Capital Investment Management had great plans for the future. Its sleek, high-design offices on the 57th floor of the 59-story Citigroup Center offer sweeping views of Manhattan and - as a long hallway of empty offices attests - plenty of room for more staff.

But in a few short weeks, Amber's world has turned upside down. The firm, which at its peak last year