JOIN USLehman Brothers went bankrupt in September 2008, following which the global financial crisis worsened.
“The bank (HSBC) handled clearing and settlement for all Lehman’s trades in sterling and much of its Asian business. It started to withdraw credit after implosion of American investment bank Bear Stearns in March 2008 under a scheme called Project Opaque,” The Sunday Times said.
“HSBC were not going to allow us to do business. They put a gun to our head,” the paper quoted a former senior executive at Lehman Carlo Pellerani telling an investigation into the collapse of the investment banker as saying.
“HSBC, Britain’s biggest bank, has been accused of helping precipitate the fall of Lehman Brothers by demanding billions of pounds in collateral days before its collapse,” the paper said. A 2,200-page official report delved into the collapse of once-famed Wall Street major and highlighted the roles played by senior executives of the bank and auditing firm Ernst & Young, and others.