Dictum Non Meum Pactum: Lehman's Minibond Transactions
Hong Kong Law Journal, Vol. 38, No. 3, 2008
6 Pages Posted: 4 Mar 2009
Date Written: December 1, 2008
Abstract
This article examines problems pertaining to complex financial instruments highlighted by the September 2008 bankruptcy filing of Lehman Brothers Holding Inc. It deals mainly with sales to Hong Kong and Singapore retail buyers of structured notes branded 'Minibonds'. These were debt issues arranged by Lehman and sold with its help through local bank and securities dealer distributors. Structuring securities was important in Lehman's global activities and the firm's sales to retail buyers in Asia were prolific. The analysis focuses on the even-handedness of the sale of complex instruments managed by Lehman in Hong Kong, and the supervisory regime under which such sales are made. It also asks whether certain common law jurisdictions might reconsider the formation of complex financial contracts and seek a more generally moral market for their use.
Keywords: Lehman Brothers, Minibonds, Hong Kong, Investor protection
JEL Classification: G24, G28, K22
Suggested Citation: Suggested Citation