Home / Markets / Market Overview
Monday, September 15, 2008
Lehman Customers: Where You Can Turn for Help
By Joanna Ossinger
FOXBusiness
Customers of Lehman Brothers--including those of Lehman’s wholly-owned subsidiary Neuberger Berman--would understandably be nervous about the company’s bankruptcy filing.
The financial community made efforts on Monday to calm any fears customers might have, though the eventual fate of those accounts was still unclear.
A press release put out by Lehman (LEH) on Monday morning said that “none of the broker-dealer subsidiaries or other subsidiaries of LBHI will be included in the Chapter 11 filing and all of the broker-dealers will continue to operate.”
It added that Lehman customers, including customers of the Neuberger Berman subsidiary, “may continue to trade or take other actions with respect to their accounts,” and that fully-paid securities of Neuberger Berman customers “are not subject to the claims of Lehman Brothers Holdings’ creditors.”
The Securities and Exchange Commission issued a press release declaring that it “is taking actions to ensure that customers of Lehman Brothers Inc., the U.S. regulated broker-dealer subsidiary of Lehman Brothers Holdings Inc., which holds the accounts of Lehman’s U.S. securities customers, will not be adversely affected by recent market events.”
Ladenburg Thalmann analyst Dick Bove cautioned that “it remains to be seen how effective these businesses can be when the parent company is in bankruptcy.”
Countering that concern, Neuberger Berman released a statement to allay customer fears in which it stated that “it is our intent to expedite the bulk transfer of assets custodied at Lehman Brothers to a new, unaffiliated service provider.”
Bank deposits can come under protection from the Federal Deposit Insurance Corp., within limits.
Also, Lehman participates in the Securities Investor Protection Corp., which protects a good deal of the assets. The SIPC’s Web site says it protects “the cash and securities – such as stocks and bonds – held by a customer at a financially troubled brokerage firm.”
The SIPC noted that investments ineligible for its protection include “commodity futures contracts and currency, as well as investment contracts (such as limited partnerships) and fixed annuity contracts that are not registered with the U.S. Securities and Exchange Commission under the Securities Act of 1933.”
The SIPC issued a press release in which its president, Stephen Harbeck, said it would "intervene as necessary to protect the cash and securities of customers," but added that "such an action is considered unlikely at this time."
Here are some places Lehman customers can turn for more information:
SEC
The SEC invited Lehman customers to contact its Office of Investor Education and Advocacy for individual assistance at help@sec.gov.
SIPC
Check out the Help Center on the Web site. You can find other contact information here.
Neuberger Berman
Questions about Neuberger Berman can go to the firm’s general information number, 212-476-8800. Neuberger Berman Private Asset Management can be reached at 877-672-7329. You can also go online.
Lehman Brothers
The Web site has more information.
FDIC
This Web site lists whether deposits are insured by the FDIC. Other contact information can be found here.






