Hedge Funds Face Margin Calls On Frozen Lehman Assets

Adding insult to injury, hedge funds with frozen assets at Lehman Brothers’ London prime brokerage may have to meet new margin calls on those assets.

PricewaterhouseCoopers, which is administering the Wall Street bank’s bankruptcy and liquidation, said it may demand additional collateral on some US$65 billion in frozen assets. Even though they can’t touch those assets, PwC will make margin calls if the value of the securities falls.