Lehman Brothers, the failed investment bank, has asked to enter around 2,400 UK employees into the Pension Protection Fund scheme, reports The Telegraph .
The lifeboat fund said it is reviewing a request made by administrators, PricewaterhouseCoopers, to admit part of the bank's pension scheme.
Should the plan be accepted into the fund, it would lead to a 13pc leap in the number of payments made by the PPF to people who have lost their pensions as a result of their company collapsing.
Lehmans was the fourth-largest investment bank in the US before it filed for bankruptcy last month.
It became the first financial company to seek help from the PPF, which currently pays the pensions of employees in industries such as manufacturing and engineering, including MG Rover.
Hedge funds delivered their worst performance on record last month as volatile markets and bans on short-selling battered the industry, according to The Times.
Hedge funds worldwide lost 4.6 per cent of their value in September, according to EurekaHedge, a research firm. This was the biggest monthly fall in Eureka's index since it began collating data in 2000. It means that the sector is down 7.7 per cent since the start of the year and is heading for an annual loss for only the second time in its history.
It emerged yesterday that Lansdowne Partners' $7billion (£4.2 billion) hedge fund lost 6.1 per cent of its value in September and was down 11.7 per cent in the quarter.
The hedge fund, run by Stuart Roden and Peter Davies, is one of the most respected players in the London market. The two fund partners told investors in a monthly letter that they were “disappointed at the results for the month and quarter ... We take some comfort from the overall numbers being around our risk-tolerance levels, despite a market environment where volatility was pretty unprecedented.”
Credit Suisse (CS) today warned of further squeezes on the banking sector as the Swiss bank confirmed it had lost Sfr1.3bn (£682m) in the third quarter of this year, The Guardian reports.
Brady Dougan, chief executive, said: "We expect the market environment to remain very challenging and we are cautious with regard to the outlook for the fourth quarter." He said the third quarter figures were "understandable" in the financial turmoil but "clearly disappointing."
The Swiss bank earlier this month raised Sfr10bn in fresh capital from investors, including a sovereign wealth fund, while its rival UBS was forced to turn to the government. It is the first of the major European banks to report this quarter.
CS confirmed writedowns in leveraged finance and structured products of Sfr2.4bn in investment banking, which lost Sfr3.2bn pre-tax in the quarter. But the bank said it had reduced its exposure to most toxic assets at the same time.
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