Lehman unit needs approval for payments

Singapore: Singapore's central bank said yesterday said the local unit of Lehman Brothers will need to seek its permission before it pays out its funds to third parties.

The statement came after the Singapore Exchange suspended new trading positions of Lehman in the securities and derivatives markets.

Meanwhile, the central bank said the local unit of embattled insurance giant American International Group Inc has sufficient assets to meet its liabilities as nervous policyholders lined up outside the company's offices.

AIA Singapore, a subsidiary of AIG, is required by Singapore law to maintain enough funds to cover its polices.

Turkey

Turkey's banking regulator BDDK head Tevfik Bilgin told Reuters on Tuesday that the Turkish banking system held no risky positions linked to Lehman Brothers.