Friday, November 7, 2008

Swiss Clients Dump Lehman Structured Products, Swiss Regulator to Investigate

Exchange Traded Funds volumes traded on the Swiss Stock Exchange soared in October to a record 95.4% against the previous month, and 183.6% on the year to reach SFr7.6bn, according to numbers released by the SWX.

In contrast, demand for structured products has fallen, as investors pile out of these investments as the credit crunch bites.

Structured products and warrants raised SFr5.8bn on the SWX in October, down nearly 13% year-on-year and 14% month-on-month.

Yesterday, the Swiss banking regulator said it is investigating the sales of structured products by the failed investment bank Lehman Brothers to clients at Credit Suisse and other banks.

Clients in Switzerland have complained about heavy losses from structured products issued by Lehman, which collapsed earlier this year, according to a Dow Jones Newswires report.

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