Lehman’s Hedge Fund Clients Face Margin Calls on Frozen Assets, PwC Says Lehman Brothers Holdings Inc.’s hedge-fund clients may have to pay more collateral on $65 billion of assets frozen when the investment bank went bankrupt a month ago.
State Street May Absorb as Much as $450 Million of Investor Credit Losses State Street Corp., the world’s largest money manager for institutions, may set aside as much as $450 million before taxes this quarter to absorb losses for investors whose funds were hurt when credit markets seized up.
China Investment Corp. Seeks Return of All Cash From Reserve Primary Fund China Investment Corp., the nation’s $200 billion sovereign wealth fund, has asked to withdraw its investment in Reserve Primary Fund, a U.S. money-market fund that reported losses and halted redemptions last month.
JPMorgan Prime-Brokerage Assets Rise 25% as Hedge Funds Move to Banks JPMorgan Chase & Co. increased prime-brokerage assets by about 25 percent as hedge funds pulled accounts from securities firms, Chief Executive Officer Jamie Dimon said.
Brown Seeks Global `Early Warning’ System, Stronger IMF to Tackle Crises U.K. Prime Minister Gordon Brown called for an overhaul of global financial regulation and an “early warning” system to prevent banking crises, setting up a trans-Atlantic clash over world economic management.
Credit Default Swaps Unfairly Blamed for Causing Global Crisis, Group Says Credit-default swaps have been blamed unfairly for causing the global financial crisis, the head of an industry body that represents dealers and sets trading standards said.
Paulson Lacks Leverage to Force Banks to Put Federal Cash Infusion to Work Treasury Secretary Henry Paulson persuaded nine major U.S. banks to accept $125 billion in government investment. Getting them to lend it out may prove a tougher sell.
Artradis AB2 Fund Said to Profit From Market Turmoil as Volatility Surges The Artradis AB2 fund, run by Singapore’s biggest hedge-fund firm, gained 4.96 percent in September, when Asian equities had their worst month in 18 years, two people with knowledge of its performance said.
Treasuries Rise, 10-Year Yield Falls From Two-Month High as Stocks Decline Treasuries surged as Federal Reserve Chairman Ben S. Bernanke said government actions to stem the credit crisis won’t immediately revive the economy and stocks tumbled, boosting demand for the safety of government debt.
Avoca Capital’s Loan Fund Had to Sell Assets as Prices Tumbled, S&P Says Avoca Capital, a Dublin-based asset manager that oversees more than 4 billion euros ($5.5 billion) of debt, was forced to sell assets to raise money because of a slump in the price of high-risk, high-yield loans.
London Banking Job Vacancies Fell for Third Month, Morgan McKinley Says Job vacancies in London’s financial- services industry slumped 42 percent in September compared with a year ago amid financial market upheaval, according to a survey by recruitment firm Morgan McKinley.