270 million euros went to Lehman
Greek banks had placed some 270 million euros in Lehman Brothers financial products before the investment bank recently filed for bankruptcy, according to sources. Lenders had placed the money in different financial products, such as bonds or shares, through their private banking services, mutual funds and direct sales to retail investors. Sources point out that the exact amount Greek investors will recover can not be determined until the end of the clearing process. The amount of protection offered to each investor will also depend upon the type of Lehman product they have acquired. Bond holders, for example, will be paid back depending on the seniority of their investment. Investors who hold senior bonds will be the first to get their money back after the government. The largest chunk of investments in Lehman products, some 110 million euros, is believed to have been made by Citibank Greece on behalf of some 300 customers. EFG Eurobank, Greece’s second-largest lender, has also placed nearly 50 million euros, with the majority going to bonds, while Alpha Bank has invested 90 million euros. National Bank, Greece’s largest lender, announced on Friday that its exposure to Lehman Brothers transactions on a group level is just under 4 million euros. The Greek lender also said private banking customers had placed an additional 6.8 million euros in deals with the investment bank. Lehman Brothers Holdings Inc filed the biggest bankruptcy suit in US history on September 15. It reported assets of $639 billion and debts of $613 billion.
