Hedge funds win Lehman battle
03 August 2010 London
Image: Shutterstock
Hedge funds whose money was not properly ringfenced when Lehman Brothers went into administration have won a High Court battle to gain access to client money deposited with the UK division of the bank.
The ruling overturns a decision made in December, which said that investors whose money had not been segregated when the bank collapsed would not have access to the client money pool.
The judgment was "likely to have a significant knock-on effect both on the timing and level of any distribution of client money to [Lehman Brothers International (Europe)'s] clients," said Tony Lomas, joint administrator of the bank and partner at Procewaterhouse Coopers.
The court has referred the case back to the original judge, who will gve guidance on how the client money funds should be traced.
The ruling overturns a decision made in December, which said that investors whose money had not been segregated when the bank collapsed would not have access to the client money pool.
The judgment was "likely to have a significant knock-on effect both on the timing and level of any distribution of client money to [Lehman Brothers International (Europe)'s] clients," said Tony Lomas, joint administrator of the bank and partner at Procewaterhouse Coopers.
The court has referred the case back to the original judge, who will gve guidance on how the client money funds should be traced.
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