Lehman was basically filing a claim on the "derivitive insurance agreement" so Lehman could collect enough money to pay its demand requirements. It was the law of the jungle of Sept 16 and Lehmans was only concerned with Lehmans. What is Insurance if it is not a contract to protect against an adverse outcome of yourself. Homeowners,collision, life insuance....all are cased when something bad happens to you.
What Lehman "derivative insurance agreement" do you imagine Lehman owned that would allow them to claim money from AIG? Be specific.
What is Insurance if it is not a contract to protect against an adverse outcome of yourself.
You could buy a contract that pays off when Lehman defaults on their debt. Is that what you think Lehman bought? A contract that pays off when Lehman defaults?