Hong Kong banks agree to repay Lehman investors' losses

Sixteen banks have agreed to buy back financial instruments they sold to investors for up to 96.5% of their value.

More than 40,000 customers had invested close to $2.5bn (£1.6bn) in Lehman's financial products.

Lehman Brothers filed for bankruptcy in September 2008 due to an economic slowdown and credit crunch.

The repayment of losses incurred following the collapse has been an ongoing saga in Hong Kong.

Investors accused the banks of misleading them with complex products, triggering a tussle between customers, banks and regulators.

The banks had previously offered to buy back the products at 60% of their value in 2009.

The current offer will need to be approved by at least 75% of the investors who hold the products. They are expected to hold meetings to discuss the issue in the coming months.

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