The following links are intended to provide asset managers with information relating to current market conditions:
Lehman Brothers International (Europe)
Lehman Brothers International (Europe) has been placed under the administration of PriceWaterhouse Coopers (PWC) in London.
PWC is managing the closure of Lehman’s business and posts information on its website (www.pwc.com.uk).
Click here for information from the release.
Protocols
Firms should seek advice of counsel with respect to their rights or obligations in connection with this matter. Although SIFMA may not provide legal advice, questions concerning the posting by SIFMA of these Protocols may be directed to Tim Cameron, Managing Director, The Asset Managers Forum, at tcameron@sifma.org.
Protocol 08-01 is for non-FICC MBSD members, addresses the process for terminating certain forward settling trades affected by asset managers with Lehman Brothers in connection with mortgage-backed securities , known as “TBA trades”.
This Protocol of the Lehman Brothers Inc. Trustee addresses prime brokerage arrangements and other broker-dealer transactions.
Protocol 08-02 relates to terminating certain specified and allocated trades done with Lehman Brothers in connection with mortgage-backed securities, which are known as “pool” trades.
EESA & TARP
The Emergency Economic Stabilization Act (H.R.1424) establishes the Troubled Asset Relief Program (TARP), temporarily increases the deposit insurance limit, provides a one-year alternative minimum tax (AMT) relief and includes energy tax and tax extender provisions. Following a failed vote in the House earlier this week on legislation including only the TARP portion, the Senate approved an amended bill including an increase in the deposit insurance limit and the Senate-passed energy tax and tax extender package by a vote of 74-25. The House then approved the legislation by a vote of 263-171.
Click here to read a more about the Emergency Economic Stabilization in SIFMA’s Washington Weekly.
Click here to read Emergency Economic Stabilization Act (H.R.1424).
Click here to read a statement by Henry Paulson, Secretary of the Treasury.
Click here to read a statement by Tim Ryan, President and CEO of SIFMA.
Lehman Bankruptcy
Several members SIFMA's Asset Management Group have contacted the staff with questions relating to Lehman Brother's bankruptcy. Many of these members were Lehman's trading partners. The Asset Management Group would like to inform its members that a website and phone number have been posted on lehman.com to address questions by counterparties, creditors, shareholders and claim filers. A separate web site and phone number is available for questions relating to the SIPA proceeding. See information below:
Counterparties, Creditors, Shareholders and Claim Filers
For questions related to Lehman Brothers Holdings Inc.'s Chapter 11 filing:
U.S.: 1-866-879-0688
Non-U.S.: 1-646-282-2579
http://chapter11.epiqsystems.com/lehman
For questions related to Lehman Brothers Inc. SIPA proceeding:
U.S.: 1-866-841-7868
Non-U.S.: 1-503-597-7690
http://www.lehmantrustee.com
Short Selling
The SEC’s Division of Trading and Markets has made the following statement:
“On Friday, October 3, 2008, the President signed the historic Emergency Economic Stabilization Act of 2008 (H.R. 1424), aimed at stemming the credit crisis. Accordingly, the Commission’s Emergency Order that prohibits persons from selling short the securities of financial institutions will expire at 11:59 p.m. ET on Wednesday, October 8, 2008.”
Click here to read the SEC statement
Click here to view recent releases relating to short selling
SIFMA has also created a web page related to short selling regulatory developments.
Fails
On October 3, 2008, SIFMA released its Fails Best Practices document that provides day-to-day fails management practices and techniques to all U.S. Treasury securities market participants. The intent of SIFMA’s best practices is to provide general guidance that enables firms to take action if there is a significant increase in fails, including setting in place forward-thinking practices and procedures to help them navigate low interest rate market environments.
Click here to read SIFMA’s Fails Best Practices document for Treasuries.
