by Hannah Stodell
IFAs are bracing themselves for potential losses on clients' capital invested in structured products underwriitten or powered by the bankrupted investment bank Lehman Brothers.
Lowes Financial Management managing director Ian Lowes currently has 32 clients with exposure to Lehman contracts and says it is too early to gauge the final outcome of the bank’s collapse on their investments. He says: “Communications from Lehman on Friday said the proposed sale of the investment arm wouldn’t affect the structured products division. They can sell it as much as they like but something’s going to be affected. “
Meteor Asset Management has confirmed it has invested in securities issued by various Lehman Brothers subsidiaries.
Money Marketing understands that NDF also had exposure to Lehman contracts as recently as two months ago and calls to the consumer line of Isa/plan manager DRL were answered by a Lehman Brothers answer phone message.
At this stage Meteor says it does not know how the Chapter 11 filing in respect of the holding company will affect these products. It says: “At present, we understand that all other Lehman companies are still trading, and it appears likely that it is intended to undertake an orderly liquidation of the group, selling off each business unit. We have been in contact with Lehman Brothers in London this morning, but as yet they can give us very little information.”
Source: MoneyMarketing.co.uk.
SPA-2008
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