Investor protection after the Lehman brothers case

Abstract

This research is intended to assess the existing level of protection enjoyed by investors using the Lehman Brothers bankruptcy in 2008 as a case study. Different cases and the different attitudes of European courts will be studied through the specific perspective of liability regimes and the possibility of compensation for damage suffered by retail consumers as a consequence of the purchase of Lehman Brothers’ financial products. Three different parties were involved and, to some extent, contributed to the damage: banks and financial operators in general, credit rating agencies and (public) financial supervision authorities. The first chapter will give a general overview of Lehman Brothers’ activity, products and bankruptcy, whereas the following three will focus on the three different subjects, examining both the existing laws that impose duties on them and the principles courts have developed in this respect. In particular, the research will underline whether and to what extent EU law can make a contribution in providing a satisfactory level of protection to retail investors. The final chapter will make some concluding remarks.