Minibond buy-back plan defended

Financial Secretary John Tsang Chun-wah has defended the buy-back of Lehman Brothers derivatives as practical and capable of withstanding challenges.

His comments follow the announcement of a US class-action lawsuit by local investors expected to start by the end of next month.

The class action is an attempt to recover almost HK$13 billion from the bankrupt Wall Street giant after a proposed buy-back of minibonds suffered an earlier setback.

The government has said any legal challenge would inevitably delay the buy-back timetable.

Mr Tsang said: 'We are pleased to hear the Hong Kong Association of Banks will do its best to clear the challenges ... as soon as possible and start the buy-back.'