Dictum Non Meum Pactum: Lehman's Minibond Transactions

Hong Kong Law Journal, Vol. 38, No. 3, 2008

6 Pages Posted: 4 Mar 2009

See all articles by Paul Lejot

Paul Lejot

The University of Hong Kong - Faculty of Law

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

Lejot, Paul, Dictum Non Meum Pactum: Lehman's Minibond Transactions (December 1, 2008). Hong Kong Law Journal, Vol. 38, No. 3, 2008, Available at SSRN: https://ssrn.com/abstract=1353107

Paul Lejot (Contact Author)

The University of Hong Kong - Faculty of Law ( email )

Pokfulam Road
Hong Kong, Hong Kong
China

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