The Aftermath of the Lehman Brothers Collapse in Hong Kong: The Saga, Regulatory Deficiencies, and Government Responses

Abstract

The article examines the fallout of the Lehman Brothers collapse in Hong Kong. As an international financial hub in Asia, Hong Kong was profoundly affected by the collapse of this company. As a result, it impacted negatively on the public¿s confidence in the Hong Kong banking sector. Furthermore, this event has exposed a number of regulatory deficiencies in Hong Kong. In response to this financial crisis, the Hong Kong Government has made an unprecedented move to negotiate with local banks to refund the investors.