HK to launch probe against banks in Lehman saga
Friday, November 28, 2008
Hong Kong lawmakers voted late on Wednesday to invoke special powers for a probe into alleged misconduct by banks who sold investors failed Lehman Brothers investments, as pressure built on such banks for compensation.
The city's legislature voted after a marathon half-day debate to invoke sweeping and rarely used powers to investigate 21 banks alleged to have misled investors over failed Lehman Brothers investments, which could force top bankers and officials to testify, and banks to disclose commercially sensitive information.
Around 40,000 Hong Kong investors ploughed nearly $2.5 billion into failed Lehman-linked structured products and mini-bonds, with many accusing the banks of duping them into buying what they thought were low-risk products. read more
