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In the WSJ article on Lehman Brothers and its role as a country party in interest rate swaps, which of the following statements is not
In the WSJ article on Lehman Brothers and its role as a country party in interest rate swaps, which of the following statements is not correct: As a counterparty to swap contracts, Lehman Brothers was not required to post a margin or security deposit to guarantee the fulfillment of the swap contracts. The counter parties to Lehman Brothers trusted the reputation and big name (blue chip company) brand of Lehman and never questioned the riskiness of swap contracts. Some of the swap counter parties to Lehman could not cancel these contracts du to huge cancellation penalty even though Lehman ceased to exist. There was a clearing house in the interest rate swaps market, just like in the futures market, but it failed to force Lehman Brothers to fulfill its side of the swap as a counter parity
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