Lehman Brothers Equity-linked Notes

The Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA) announced today that an agreement has been reached with Standard Chartered Bank (Hong Kong) Limited (Standard Chartered) in relation to the bank’s distribution of equity linked structured notes issued and guaranteed by Lehman Brothers (LB ELNs) (Notes 1&2).


Without admitting liability, Standard Chartered has agreed to make a repurchase offer to eligible customers (Note 3) holding an outstanding LB ELN distributed by Standard Chartered. The total value of the repurchase offer is estimated to be approximately HK$1.48 billion and will cover over 95% of the outstanding transactions in LB ELNs by Standard Chartered customers.


Read
http://www.sfc.hk/sfcPressRelease/EN/sfcOpenDocServlet?docno=11PR19


My comments
I hope that the regulators in Singapore will follow the example of Hong Kong and take similar action against banks that distribute products that are unsuitable for consumers.