Prime brokerages in the US were huge lenders to the hedge funds now going under, see this from the weekend:
To lend to these funds trading with 2 to 3 times leverage is unfortunate, to lend at 5 - 7 looks like carelessness.
Earlier:
Nomura says it has cancelled its planned sale of USD-denominated bonds
- (firm warns of losses of over USD2bn)
As a ps., if you need it, there is never only one cockroach.