FSA to take action on Lehman Bros capital protected investments
When US financial giant Lehman Bros collapsed, a number of UK investors who had bought into the "capital protected" sector of the market were not overly concerned and under the impression there capital was actually protected. However, these so-called structured products are now worth only a fraction of the initial investment and the Financial Services Authority (FSA) is looking into this.
It would appear that while many people assumed that these "capital protected" investments were indeed protected, the small print (which many people still do not read) confirmed that these guarantees were not set in stone. As a consequence, when the US giant collapsed and financial markets around the world went into meltdown the value of these structured investments also headed south. As a consequence over 5000 UK investors are nursing losses which were not covered by the Financial Services Compensation Scheme.
The FSA is primed to take action on behalf of investors who acquired these particular assets although at this moment in time it is unclear if, how and when investors may well receive any compensation. Despite the fact that Lehman Bros has been in administration for nearly one year many original investors are no closer to the end game.
Share this..
Related stories
UK government announce £50 billion rescue package
It was probably the worst kept secret in the financial markets but today we have seen the announcement of a £50 billion rescue package for UK banks. But does it go far enough and will it see us through the crisis?
While the move today was announced in a blaze of glory it seems to many as though this is yet again only a half way house and not the final piece of the jigsaw for the U...
Scottish tax payers set to take £45 million hit
While there is no good time to lose £45 million of tax payer's money, the news that Scottish local authorities have around £45 million with Icelandic banks is not good news for councils, for the government and for tax payers. As the SNP government continues it relentless crusade to place councils under as much spending pressure as possible - often taking the praise for scheme which are unfunded...
Read MoreMervyn King Fires The First Warning Shots of Recession
Mervyn King, the governor of the Bank of England has fired the first warning shots that the UK is heading for a recession. In a very honest assessment of the UK economy he suggested that the country is in a worse situation than at any time since the Second World War. However there was more doom and gloom to follow....
In line with the views of many experts in the City he has confi...
Major interest in Matalan sale
Despite taking the company private just three years ago, for a figure of £827 million of which £410 million was debt, John Hargreaves, the owner of the Matalan is on the verge of a massive return on his investment. The company is effectively up for sale at a price of £1.5 billion and the auction has attracted the interest of five potential private equity buyers in the shape of TPG, Blackstone,...
Read MoreGreek authorities receive pledge of support from EU
Greek banking stocks have risen sharply today after confirmation that the EU will offer financial and practical assistance to the Greek government as the banking crisis continues to cause problems for the wider economy. While the Greek authorities have denied rumours that they will require bailout funding from the EU, insisting they can fight the fight themselves, it does offer much-needed support...
Read More