Barclays To Buy Lehman Prime Brokerage

Sep 18 2008 | 11:50am ET

Barclays has agreed to buy Lehman Brother’s North American investment-banking group, including its prime brokerage, just days after effectively forcing Lehman into bankruptcy.

New York-based Lehman filed for Chapter 11 on Monday after talks with Barclays about buying the whole of Lehman broke down. But yesterday, it agreed to pay $250 million for Lehman’s investment banking and capital markets operations in North America, which has about 10,000 employees. Barclays also agreed to pay another $1.5 billion for Lehman’s Times Square headquarters and two data centers in New Jersey.

“The proposed acquisition of Lehman Brothers North American investment banking and capital market operations accelerates the execution of our strategy of diversification by geography and business in pursuit of profitable growth on behalf of our shareholders, in particular increasing the percentage of Barclays earnings sourced in North America,” Barclays CEO John Varley said.

Barclays will also “immediately commence discussions” about buying Lehman operations outside of the U.S., Lehman said in a statement.

“This is a wonderful outcome for a great number of our employees that will preserve and strengthen our terrific franchise,” Lehman CEO Richard Fuld said.

Lehman is still in talks with private equity firms Bain Capital and Hellman & Friedman about selling its investment management group.


In Depth

Q&A: Star Mountain's Brett Hickey On Investing In 'The Growth Engine Of America'

Sep 22 2017 | 5:06pm ET

Lower middle-market companies form the economic fabric of the nation, but they can...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Don’t Overlook These 6 Hybrid Cloud Concerns

Sep 14 2017 | 6:27pm ET

Cloud-based technology solutions have made tremendous inroads into the alternative...

 

From the current issue of

With NFL season on the horizon, it’s time to take a look at our Fantasy Football value picks. Last year, we nailed it on Drew Brees, Jordan Howard, Frank Gore and Dwayne Allen. We missed pretty badly on Duke Johnson, Demaryius Thomas, Mohammed Sanu and Eli Manning.