Lehman fallout hits structured plans

Lehman bankruptcy has halted income on returns on NDFA, Arc, Meteor and DRC products with capital jeopardised

Investors in products from NDFA, Arc, Meteor and DRC may lose some or all of their capital in certain products because the groups used Lehman Brothers as the counterparty. Lehman, which unexpectedly fell apart last week, was the counterparty for five NDFA products and seven from DRC. Meteor and Arc, which has some investors from collapsed precipice-bond firm Eurolife, have used Lehman as a counterparty. Income from products backed by Lehman has ceased and will not restart unless groups can make suitable arrangements with administrator PricewaterhouseCoopers. An NDFA spokesperson sai...