Lehman brothers structured notes: It is finally moving!
Legal proceedings against Citibank were launched in Belgium on early December. About 1.500 clients arrived to hear how they could recoup the money they saw go up in smoke when Lehman Brothers went bankrupt in September 2008. According to Citibank about 4.000 of its clients in Belgium were concerned for investing their hard-earned savings in structured notes issued by Lehman Brothers.
This should prove whether Citibank was guilty of the misuse of confidentiality and violation of the prospectus act when it sold the fourteen Lehman Brothers products. Civil proceedings are scheduled to last until end of January 2010 whereas on April 2010 debates and hearings before the public ministry will commence. Among them is Jean-Paul Servais, chairman of the financial watchdog CBFA, who is currently investigating the case according to the Belgian Flamish daily newspaper De Standaard.
In Greece also Citibank has also disposed Lehman brothers structured notes to over 2.000 of its clients whereas other banks such as Eurobank and Alphabank have sold these products to a smaller number of their clientele. Since then several authorities including The Ministry of Development, the Bank of Greece and the Capital Market Regulating Authority have all condemned the bank to heavy fines for the disposal of such products. Last summer a major Multibench Court ruling has ordered Citibank to fully reimburse -including interests- a person who has invested his savings in Lehman Brothers products through this Bank. In spite of this but also of conciliatory attempts there is nothing concrete in view for an out of Court settlement as the opening of our Main Court lawsuits versus Citibank but also versus another bank starts on March 2010.