lehman-escapes-penalties-in-cifh-case

Lehman escapes penalties in CIFH case

Lehman Brothers narrowly avoids having to make a compulsory cash offer to buy Citic International Financial Holdings after internal muddles incur the wrath of the Hong Kong regulator.
A fine mess was mopped up this week as Hong KongÆs Securities and Futures Commission passed down its judgment on an extraordinary sequence of recent events concerning Citic International Financial Holdings CIFH and its banking advisors Lehman Brothers.

In late 2007 and early 2008 Lehman had made a number of proposals to the Citic Group concerning the privatisation of its listed subsidiary CIFH.

The terms featured a significant increase in Banco Bilbao Vizcaya ArgentariaÆs stake in CIFH, and the shares were suspended on June 3. Lehman was formerly retained as adviser on June 10 and the shares started trading again on the June 11.

At that point, Lehman should have stopped proprietary trading...
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