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‘Treasury ditched Lehman investors’

Conservative MP Ed Vaizey has accused the Treasury of “washing its hands” of investors who lost millions of pounds in structured products backed by Lehman Brothers following its collapse last year.

At a private members’ debate on structured products at Westminster Hall on Tuesday, Vaizey said 6,000 UK investors lost around £200m in these schemes but the Treasury says it is not its problem because the losses were due to “poor investment performance”. He said: “Poor investment performance is perhaps understating it when you invest £200,000 in something that is advertised as 100 per cent capital-secure and then wake up some weeks later to find your investment is worth zero.”

Treasury Exchequer secretary Sarah McCarthy-Fry said: “The Government has intervened to protect depositors who held money in Icelandic banks but parallels should not be drawn between depositors and those invested in structured products with a guarantee backed by a third party such as Lehmans.”

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