London office market feeling the pain from banking woes

London's office market may be facing some tough times in the immediate future as the collapse of Lehman Brothers means the firm could default on the lease it holds on a 30-floor tower in Canary Wharf. The issue even has another level of complexity because should Lehman default on the lease -- which runs through 2033 -- the landlord, Canary Wharf Group PLC, would turn to an insurance policy it took out on the contract. And that policy is backed by AIG.

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