In a lawsuit filed in United States Bankruptcy Court in Manhattan, the plaintiffs accused JPMorgan of extracting billions of dollars in collateral for loans just before Lehman's Sept. 15, 2008, bankruptcy by threatening to otherwise deprive Lehman of clearing services crucial to its broker-dealer business.
The firm said it had been "orally advised" that regulators intended to "recommend that the C.F.T.C. bring aiding and abetting, civil fraud and supervision-related charges" against the Goldman unit related to its provision of clearing services to this broker-dealer.
The relatively small number of introducing firms that have experienced problems should not taint the clearing business itself or the many fine firms who avail themselves of clearing services.
(32) In view of the global nature of financial markets, agreements with CCPs established in third countries on the provision of clearing services within the Union are necessary.
The offering of clearing services in a different currency or in financial instruments that significantly differ in their risk characteristics from those for which the CCP has already been authorised shall be considered an extension of that authorisation.
Seldom has one pianist brought so much detailing to this work in the clear service of integration; it almost never seems this short, or compact, or fresh.
The key to its survival remains balancing lucrative programmes with those of clear public service value that never cover their costs from advertising, such as Channel 4 News and Unreported World.
Avinash Persaud, head of global research at State Street in London, says they are just a sort of information-clearing service.
Either way, "we think we are well positioned to be a market leader under the new rules," said Jack McCabe, co-head of Goldman's derivatives clearing service business.
