March 17, 2008 / 11:54 AM / 11 years ago

UPDATE 1-S'pore's DBS, Lehman still trading with each other

(Updates with comment from Lehman, details)

SINGAPORE/KUALA LUMPUR, March 17 (Reuters) - Lehman Brothers LEH.N and Singapore’s DBS Group Holdings (DBSM.SI) said on Monday that they were still trading with one another, despite market rumours to the contrary.

“We are doing business with DBS... They continue to deal with us and we just executed a NZ$20 million kiwi FX trade with them,” Lehman spokesman Matthew Russell said in response to queries from Reuters. “It’s business as usual.”

“There are transactions with Lehman going through today,” DBS spokeswoman Karen Ngui said when contacted separately by Reuters.

She added, however, that DBS, Southeast Asia’s largest bank, has become more vigilant on treasury transactions given current market conditions “and is reviewing all transactions on a case-to-case basis.”

The comments followed market rumours that DBS had stopped dealing with Lehman and Bear Stearns BSC.N on concerns that transactions might not be settled.

Shares of Lehman fell sharply on Friday on concerns that the firm could suffer the same fate as Bear Stearns BSC.N, which nearly collapsed after other financial institutions stopped it lending money and customers withdrew their funds.

Bear — the fifth-largest U.S. investment bank — had to be rescued by rival JPMorgan Chase & Co (JPM.N) for a rock-bottom price that valued the once mighty investment bank at less than $250 million. (Reporting by Saeed Azhar, writing by Kevin Lim, editing by Neil Chatterjee)

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