LEH Trading Partner Too Big To Let LEH Fail

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So a spokesman for Pimco claims the bond fund continues to trade with Lehman Brothers and Alan Schwartz called from Disneyworld to say nothing is fucked but I needed a little more assurance, the kind that rides in on a Zamboni machine, to allay my fears (I really am worried about all this!) and here it is: according to SAC Capital spokesman Johnathan Gasthalter, rumors that the Stamford-based shark tank had stopped taking counterparty risk are "absolutely false" and SAC "is continuing to do business as usual with Lehman."
Lehman Hit by Rumors of Firms Cutting Off Trading [CNBC]

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It's Good To Be Too Big To Fail

So, HSBC is going to have to cough up almost $2 billion for, in effect, running a massive money-laundering operation that helped fund such luminary do-gooders as the Iranian government and Mexican drug gangs. But the U.S. has decided not to throw the cuffs on the British bank because, well, that would be pretty hard. And could create an awful lot of collateral damage that no one needs as the country careens off the fiscal cliff.