Derivatives Pose New Wrinkle in Lehman Case

The New York Sun reports:

Bankruptcy lawyers and law professors are preparing for a journey into uncharted territory as the credit default swaps market gets dragged into the Lehman Brothers bankruptcy proceeding.

"The courts have dealt with credit default swaps very infrequently, and certainly not at the scale they are now out there," a lawyer at Washington, D.C.-based Caplin & Drysdale, James Wehner, said. "We have a new law and a new financial phenomenon, so there is a lot of uncertainty."

You'll want to read this one.