The auction currently underway to settle credit default swaps backed by bankrupt Lehman Brothers looks like it's going to end with massive losses for the banks and hedge funds that sold protection on Lehman's debt.
Credit default swaps, or CDSs, are -- along with mortgage-backed securities -- at the heart of the current financial crisis.
The CDS is an insurance policy against a default. Problem is, the CDS market was totally unregulated and buyers could swap them around with no one ending up holding responsibility if the debts went south.
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Posted by Personal Injury Lawyers in Phoenix, AZ
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