Appeal allows hedge funds access to Lehman cash

| 03/08/2010

(The Lawyer): The Court of Appeal has ruled that hedge funds whose money was not properly ringfenced when Lehman Brothers went into administration will have access to client money deposited with the UK division of the bank, Lehman Brothers International (Europe) (LBIE). The judgment overturns a decision handed down by Justice Briggs which stated that money not segregated when theinvestment bank collapsed would not be accessible. The appellate court has referred the case back to Briggs to give further guidance on how the client money funds should be traced, prompting warnings of further disputes over exactly what funds should be included in the money pool and who is entitled to a share.

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