DBS Hong Kong to pay $84 mln in Lehman settlement

July 15, 2010
Singapore Democrats

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Kelvin Soh
Reuters

DBS Hong Kong, a unit of Singapore’s DBS Group Holdings, will pay out a combined HK$651 million ($84 million) to some buyers of Lehman Brothers constellation notes, the territory’s financial regulator said on Wednesday.

Customers classified by the bank as having a low to medium risk profile would receive their money returned plus interest that would have been payable had it been placed in a fixed-term deposit, Hong Kong’s Securities and Futures Commission said in a statement.

Investors in Singapore, Hong Kong and Indonesia who bought the product had lost their money after the U.S. investment bank Lehman Brothers went under in 2008.

The constellation notes are credit-linked notes related to the collapsed U.S. bank.

http://www.reuters.com/article/idUSHKU00007420100714