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  "documentTitle": "Lehman Brothers | Investor Event Presentation Deck | 65 slides",
  "authorId": "lehman-brothers",
  "authorName": "Lehman Brothers",
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  "sourceTypeLabel": "Investor relations",
  "presentationDate": "2007-08-01 00:00:00",
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  "notes": "The slide serves as a defensive narrative to reassure stakeholders about credit risk management in the context of the 2007 subprime crisis.",
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      "text": "Areas of Increased Focus",
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      "kind": "list",
      "text": "Examples of recent hedge fund failures where Lehman had exposure but did not incur losses:",
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      "text": "As at May 31, 2007, total Current Credit Exposure (\"CCE\") to hedge funds was $172 million, or 0.5% of $32 billion in total CCE across the Firm. This small exposure is a function of the fact that we are well collateralized",
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      "text": "Amaranth (Sep 2006): the fund avoided default selling its troubled energy portfolio to Citadel and rapidly unwinding other positions. The fund did not default to Lehman and our derivatives positions were unwound successfully\nBear Stearns Asset Management (June 2007): two funds with leveraged exposure to the sub-prime market suspended redemptions and subsequently defaulted on margin calls. Lehman had financing and derivatives exposures to the fund and had sufficient collateral across the positions to avoid a credit loss\nBasis Capital Management (July 2007): Australian hedge fund manager with two funds that had leveraged exposure to the sub-prime market. Funds suspended redemptions and failed on margin calls after liquidity drain from asset write-downs. Lehman had financing exposure to the funds but had sufficient collateral protection to avoid a credit loss\nSowood Capital Management (July 2007): Multi-strategy hedge fund founded by ex-Harvard managers with $3.5bn of capital across two funds. Funds incurred losses and narrowly avoided default by selling most of its portfolio to Citadel. The fund met all margin calls and did not default to Lehman. We had financing and derivatives positions with Sowood that were either unwound or assigned to Citadel",
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      "text": "Despite recent volatility and widely reported problems incurred by a number of funds, we have not experienced any recent credit losses from hedge funds. This is not to say that we don't take risk, but rather our controls are designed to ensure that the risk is substantially reduced through our tight controls, especially those relating to the taking and monitoring of collateral",
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      "text": "Hedge Funds Exposure",
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