Erscheinung:28.10.2008 | Topic Measures BaFin determines that compensation is payable to depositors of Lehman Brothers Bankhaus AG, Frankfurt
On Tuesday, 28 October 2008, the Federal Financial Supervisory Authority (BaFin) determines that compensation is payable to depositors of Lehman Brothers Bankhaus AG, Frankfurt. This creates the basis for the Compensation Scheme of German Banks (Entschädigungseinrichtung deutscher Banken GmbH, EdB) to compensate the bank’s depositors.
Lehman Brothers Bankhaus AG, Frankfurt, is not only a member of the EdB but also participates in the Deposit Protection Fund of the Association of German Banks (Einlagensicherungsfonds des Bundesverbandes Deutscher Banken e.V.). Now that BaFin has determined that compensation is payable to depositors of Lehman Brothers Bankhaus AG, Frankfurt, the Deposit Protection Fund will on its own initiative write to the bank's depositors on behalf of the two deposit protection institutions.
BaFin had to determine that compensation is payable because, following the moratorium issued against the bank, the six-week period stipulated in the German Deposit Protection and Investor Compensation Act (Einlagensicherungs- und Anlegerentschädigungsgesetz – EAEG) has expired. This moratorium was issued on 15 September 2008 and has continued since then. BaFin had to order the moratorium to secure the still remaining assets. The institution is threatened with imminent inability to meet its payments obligations after in the US several companies belonging to the group had filed for Chapter 11 protection against creditors and in the UK had been placed under administration.
