Lehman Brothers ruling changes equation for creditors and clients

A UK Supreme Court ruling on client money protection at Lehman Brothers could have far-reaching consequences – not just for futures customers of Lehman and MF Global, but on the way all clients view the protections they are granted by law. By Lukas Becker


When gamblers enter a lottery, they are aware of the risks and rewards. The rules are clear, and if they lose their stake, no-one else is to blame. But what if a player didn’t know they were in a lottery – should they have to lose their money regardless?

Clients and affiliates of Lehman Brothers’ UK-based entity found themselves in that trap when the securities firm went bust in September 2008. Due largely to an unexplained last-minute money transfer and a failure to correctly segregate client

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Credit risk & modelling – Special report 2021

This Risk special report provides an insight on the challenges facing banks in measuring and mitigating credit risk in the current environment, and the strategies they are deploying to adapt to a more stringent regulatory approach.

The wild world of credit models

The Covid-19 pandemic has induced a kind of schizophrenia in loan-loss models. When the pandemic hit, banks overprovisioned for credit losses on the assumption that the economy would head south. But when government stimulus packages put wads of cash in…

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