Lehman's fall leads to liquidity drought
Dealers cut lines to a wavering AIG, hitting trading on electronic trading platforms such as Currenex and Bloomberg Tradebook FX, where AIG was a central clearer (see related article, this issue). Meanwhile, lines were decreased to Morgan Stanley and Goldman Sachs after the sustainability of their standalone investment banking business model was thrown into question.
"AIG was a main central counterparty to many of the trades transacted on Currenex, and it was a large prime broker to a lot of the
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