On December 8, 2011, the United States Bankruptcy Court for the Southern District of New York entered a memorandum decision in favor of the trustee for the liquidation of Lehman Brothers Inc. in a dispute regarding the status and treatment of claims relating to “TBA contracts.” Judge James M. Peck found that TBA contracts are not “securities” and the TBA contract claimants at issue were not “customers” within the meaning of the Securities Investor Protection Act of 1970. The decision is significant given the prevalence of TBA contracts in the mortgage‑backed securities market and because it addresses an issue of first impression.View full memo, "Lehman Brothers: Treatment of TBA Contracts"
