Repo 105: who’s responsible?

Author: Nicholas Pettifer | Published: 24 Mar 2010

Last week, IFLR analysed the fallout from Lehman’s Repo 105 opinion. One lawyer raised the question of responsibility: A general counsel at a US bank in Asia had told him that he expected their relationship law firms to make sure that the bank’s transactions were appropriate.

So this week, we asked both in-house and private practice lawyers whether they agreed:

Whose responsibility is it to ensure transactions are appropriate?

European lawyers were split. One argued that if increased due diligence was required on every legal opinion then “opinion committee meetings would go on for weeks.”

Others were...