Where Has All The Money Gone? Lehman Victims Take to The Streets

Geraldine Blecker (Frankfurt), September 28, 2009 – More than 300 gathered, mostly seniors, many in wheelchairs, on crutches and Zimmer frames, carrying their homemade banners pronouncing their discontent and protesting the loss of their retirement pensions and life savings, due to the greed and negligent advice of their own banks.

Beginning at Frankfurt’s district court, the protesters route took them along the “Zeil”, the city’s golden mile, past various banks and financial institutions, where they stopped to loudly chant their slogans, wave their banners, and sing a song or two. The parodies were not without irony. “My money lies over the ocean” was performed outside the Dresdner Bank, while “Where has all the money gone?” was directed at Citibank, both of whom, along with the Frankfurter and Hamburger Sparkassen (FRASPA and HASPA), are accused of having taken their investors for the biggest ride.

An estimated 40,000 small investors – among them a notable number of senior citizens – have been affected, many of whom lost their life savings when the financial consultants at their own banks, promised high commissions, aggressively “advised” them (often per insistent telemarketing) to purchase the worthless Lehman paper.

What do they want? Their money back. All of it. The victims are demanding a complete reversal of the Lehman transaction and full restitution to compensate for alleged malpractice and deliberately misleading advice supplied to them by their banking institutions. And they are calling for a stricter political stance and tighter government controls on financial and investment consultants, if confidence in the banks is to e restored. According to Peter Kyritz, one of the demonstration’s organizers, “The advice of the banks can no longer be trusted.”

Further demonstrations took place in Berlin and Hamburg, where protesters waved their worthless Lehman Brothers certificates accompanied by a coffin – just to emphasize the point. In Berlin, the action group has even set up a small theatre group with the slogan, “We’ve had enough, we want our money back,” to draw attention to their plight.

Unfortunately, the Frankfurt demo got little TV coverage, as it coincided with a glittering media event: the opening of the IAA (International Automobile Show). There’s irony for you.

Nevertheless, it seems that a few cages have been rattled. The first financial institution to react has been the Sparkasse Hannover who, in order to avoid a long-lasting legal battle, announced on September 21, 2009, that it would provide general restitution to their 1,000 Lehman clients, the amount of compensation based on date of purchase. Those who bought the securities prior to March 16, 2008, to be compensated with 50% nominal value, while everyone who bought after that date could expect 75%.

The Lehman victims action group see this as a step in the right direction, and hope that other banks will follow suit. As Peter Kyritz says, “The Sparkasse Hanover has got the message. An expensive decision can sometimes be cheaper in the long run. Client trust is a major asset.”

Ilse Aigner, German Minister for Consumer Protection said, “This does still not suffice,” going on to announce that more compensation must be provided for the Lehman victims.