By Deborah Levine, MarketWatch
NEW YORK (MarketWatch) -- A settlement in billions of dollars in Lehman Brothers credit-default swaps finalized without any big hitches, an industry clearing organization said Tuesday, adding a note of support to the recent recovery in credit markets.
"The liquidation process for forward open commitments involving Lehman has been completed," said the Fixed Income Clearing Corporation, a unit of the Depository Trust & Clearing Corp., in a notice on its Web site.
It said it was "pleased to announce that no loss allocations will be imposed on
member firms as a result of the liquidations of these forward trades."
The exchange between the buyers and sellers of credit-default swaps, a type of derivative contract that pays out when a company reneges on its debt, had spooked markets Tuesday. Some investors worriedsellers would be unable to come up with the cash to pay their counterparties, and these no-shows would usher in a new round of bank or fund failures.
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http://www.marketwatch.com/news/story/lehmans-massive-credit-default-swaps/story.aspx?guid=%7B70FEEA73-AAF6-4555-A10E-EE434BFC983E%7D
However, I haven't seen any analysis of who the big winners and losers were. I doubt that everyone broke even. The $540 billion facility that the Federal Reserve announced today to buy commercial paper probably helped avoid a settlement failure. 
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