Oh, Boy, Another Asset Type Is Killing the Financials

Lehman debt auction gives clue to potential losses: Financial News - Yahoo! Finance

In a best-case scenario, Silbert said, financial firms who sold CDS contracts would make their payouts in the coming weeks, have enough capital to cover all the positions, and take their losses and move on. In a worst-case scenario, sellers of the swaps would not have the cash to make the payments and would have to liquidate their assets to cover their positions.

"The next two weeks will be very telling," Silbert added.

It really sucks when you have to pay the piper.