Lehman, Barred From Platts Pricing, Still Trading Oil

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Lehman Brothers is still under "temporary review" by Platts but yesterday it traded an oil contract during the end of day price-setting period that Platts uses to set bench-mark prices, according to Reuters.
On Monday Lehman was barred from participating in the daily-price setting process, which reportedly block's Lehman from influencing prices and may prevent them from buying certain contracts. Sources say Platt's review stemmed from credit quality concerns.
Although counter-parties are still free to trade with Lehman, sources say the reports that Lehman was barred due to credit concerns could encourage traders to shy away. Decreased confidence in Bear Stearns' quality as a reliable counter-party helped led to the demise of the bank.
As Reuters notes, this is all a bit mysterious. "Sources had said earlier this week the review was due to credit issues but could not be more specific what those issues may be and it remained unclear why Platts would have any specific knowledge of Lehman's credit condition," Reuters writes.
Lehman has been quietly downplaying this story. Platts refused to either confirm or deny the reports, which isn't exactly helping Lehman in this nervous market.
Lehman trades on key Platts oil trading platform [Reuters]

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