Oh, problematic, problematic.

So there was a clusterfuck this afternoon while people with CDSes against Lehman Brothers tried to play the dating game and match up so they were against each other instead. From what CNBC is reporting, that didn’t go so well. What fun it will be to figure this out: Changes to the bankruptcy code mean that counterparties to Lehman’s credit-default swaps can seize their collateral at any time, posing an enormous potential risk to the entire financial markets. Investment banks, hedge funds and other financial players labored throughout Sunday to offset their exposure to Lehman, moving their contracts to other firms.

Go cry, emo brothers: