Lehman's Dubai operations suspended

FALLOUT CONTINUES: Lehman's Dubai operations have been suspended. (Getty Images)

Lehman Brothers have been suspended from conducting business in Dubai after the US investment bank filed for bankruptcy, the financial services authority said on Tuesday.

The Dubai Financial Services Authority (DFSA) said the UK parent company had gone into administration, precluding the Dubai-based branch from doing business.

"Until and unless the administrators determine otherwise, Lehman's is precluded from conducting business," the authority said in a statement.

"Lehman’s has not been in breach of DFSA’s requirements. The difficulties encountered by Lehman’s relate to its operations elsewhere."

The Dubai Mercantile Exchange on Tuesday said it had suspended the membership of Lehman's Dubai unit.

"The Dubai Mercantile Exchange Limited (DME) hereby notifies DME Members of the Suspension of Membership privileges of a DME Floor Member Lehman Brothers International (Europe) DIFC Branch," the DME said in a statement.

Lehman Brothers was suspended from trading on the Intercontinental Exchange, Liffe NYSE Euronext and London Metals Exchange Select electronic platform on Monday after the bank sought bankruptcy protection.

Lehman Brothers International (Europe) was a floor member of the Dubai Mercantile Exchange.

Lehman said on Monday it filed for Chapter 11 bankruptcy protection and was attempting to sell assets, becoming Wall Street's highest-profile bankruptcy since junk bond specialist Drexel Burnham Lambert succumbed in 1990.

Lehman's European arm appointed administrators, who said they would wind down the business in as orderly a manner as possible.

Lehman's petition followed three days of talks between bank CEOs and regulators at the Fed's fortress-like Manhattan building.

Print | Email | Discuss this article |

READERS' COMMENTS

View all comments (0)

Have your say

Click here to post a comment

Add your Comment All posts are sent to the administrator for review and are published only after approval. ArabianBusiness.com reserves the right to remove any comment at any time for any reason. Please keep your responses appropriate and on topic.
Name *
Remember me on this computer
Email *	(Your email address will not be published)
City
Country
Subject *
Comment *
Notify me of further comments
Security Code *
Please click post only once - your comment will not be published immediately.

MORE FROM ARABIANBUSINESS.COM