Banks sign agreement to buy back Lehman minibonds

SFC, HKMA agreement is set to buy back Lehman minibonds, but market is feeling wary


The Securities and Futures Commission (SFC), the Hong Kong Monetary Authority (HKMA) and 16 distributing banks reached agreement this July on the terms for the repurchase of Lehman Brothers' minibonds from customers. Publicly, bankers say this is a good deal for the market and for the investors, but privately there is concern among bankers and lawyers that the deal will spell trouble further down the line, as well as being unfair.

"The banks are pleased to have reached this agreement with the SF