U.S. SEC working to protect Lehman customers
WASHINGTON (Reuters) - U.S. securities regulators are taking steps to ensure that Lehman Brothers' LEH.N customers will not be hurt by recent market events, the Securities and Exchange Commission said on Sunday.
The SEC, which oversees broker-dealers, said Lehman's customers benefit from extensive protections under SEC rules, including segregation of customer securities and cash, as well as insurance by the Securities Investor Protection Corporation.
The SEC said its staff who have been on site at the investment bank will remain in place. Lehman is expected to file for bankruptcy after it failed to find a buyer.
The SEC also said it is coordinating with global regulators, such as the U.K.'s Financial Services Authority, to protect Lehman's customers and maintain orderly markets.
"We are committed to using our regulatory and supervisory authorities to reduce the potential for dislocations from recent events, and to maintain the smooth functioning of the financial markets," SEC Chairman Christopher Cox said in a statement.
(Reporting by Rachelle Younglai)
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