CS to pool Lehman products and sell to third parties

Reuters

ZURICH (Reuters) - Credit Suisse is offering clients that had invested in Lehman Brothers products the opportunity to bundle their capital and sell this to third parties, the bank said on Saturday, confirming a Swiss newspaper report.

Switzerland's TagesAnzeiger reported there was a market for large blocs of Lehman Brothers papers and that the bank would pool the papers and sell them to investors such as hedge funds or specialist investment banks.

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Credit Suisse confirmed the report, but declined to give any further details.

Credit Suisse had decided not to do this through their investment bank and will not make any money from these sales, the paper reported.

"It is a way for clients to get rid of the products and move on," a Credit Suisse spokesman said.

Clients are likely to get a letter soon and have until August 10 to decide whether they will take Credit Suisse up on its offer. Those who don't sell will have to wait until the insolvency proceedings have been wrapped up, TagesAnzeiger said.

Thousands of clients in Switzerland lost money invested in certificates issued by Lehman Brothers when the bank went under.

In 2009, Credit Suisse paid out about 150 million Swiss francs ($177.9 million) to retail clients who had invested in now worthless Lehman Brothers financial products.

(Reporting by Katie Reid; editing by James Jukwey)