Citibank Belgium is to offer a settlement to 4,000 clients who invested in Lehman-issued structured products. Deminor, the Brussels-based investor services company representing 500 Lehman Brothers creditors, has given the settlement its blessing and yesterday the two parties held a press conference.
Citibank said it is prepared to return 65% of the capital originally invested. Investors who reinvest the capital with Citibank in a special deposit, offering 5.3% pa - nearly twice the current market rate - can expect 75.9% after three years.
In contrast with other financial institutions such as Ethias, Deutsche Bank and Delta Lloyd, Citibank Belgium, despite looming court cases and pressure from MP Vincent Van Quickenbome, has until now always refused to agree a settlement for its clients. Only a limited number of customers received compensation.
Customers who accept the settlement must agree to waive any further legal action against the bank while Deminor customers who do not accept the settlement will be obliged to seek another lawyer.
SRP's Belgian database lists 14 products by Citibank launched between November 2006 and June 2008 in collaboration with Lehman Brothers, worth an initial €117.5m.
These products are available on the Belgian database.