Market practices ‘back to basics’ after Lehman collapse, says study

Lehman’s fall has made cautious deal-makers focus on legal risk and risk analysis

LONDON – One year after Lehman Brothers fell into bankruptcy protection, a report by law firm Allen & Overy suggests market practices remain cautious, focusing on risk analysis, and legal and counterparty risks.

The study of the law firm’s partners across 20 countries highlights a tightening of legal covenants in lending documentation, a “firming up” of legal risk management standards by banks and regulators alike, increased counterparty risk emphasis within capital markets, and within restru

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