Will banks flip out over Lehman ruling?

Author: | Published: 28 Jul 2011

The US Supreme Court’s decision over the enforceability of flip clauses in global structured finance deals could change the way banks choose swap counterparties.

Some lawyers even believe the issuers may restructure existing securities.

“This ruling is a game changer in terms of global structured finance business,” said Elana Hahn, partner at Morrison & Foerster.

Hahn believes that following the deal, securitisation arrangers may prefer...