Lehman Brothers ruling changes equation for creditors and clients

Protection racket

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