The Committee of European Securities Regulators (CESR) has published a report which considers the market impact of the bankrupcy of Lehman Brothers Holding Inc (LBHI).
The Lehman Brothers group comprised 2,985 entities globally, spanning numerous jurisdictions, with some regulated and other unregulated. It is the largest bankruptcy in US history.
The report indicates the principal cause of Lehman's demise was market concerns about the capital adequacy of the firm.
CESR notes that instruments with an equivalent risk/reward profile should be subject to equivalent regulatory conditions in order to create a level playing field across product classes.
The report goes on to consider convergence of application of the Markets in Financial Instruments Directive including its application and interpretation.