Entries Tagged 'Lehman Bros.' ↓
September 21st, 2008 — Bailout, Bankruptcy, Crash, Credit Crisis, Economy, Layoffs, Lehman Bros., Lehman Brothers
Administrators of Lehman Brothers’ European business have asked for the return of more than $8 billion that was transferred to the failed investment bank’s U.S. company before its bankruptcy.
The request, made in a letter sent by PricewaterhouseCoopers on Wednesday, is likely to be well received by Lehman’s 4,500 staff in London, many of whom have been angry that the bank’s U.K. operations had no cash when their parent company failed last Sunday night.
The fact that $8 billion had been transferred to New York in the days leading to Lehman’s collapse is not considered suspicious at this poing, although the auditors claim that they are not ruling anything out.
The written request may be followed up with legal action to reclaim the funds. It is too early to establish whether the money that was transferred from London to New York could even be claimed back at this point.
The funds were not necessarily sent to New York as a single sum, but more likely as an accumulation of funds over the bank’s last several days of solvency.
September 17th, 2008 — Economy, Employment, Investment Banking, Investment Banks, Jobs, Layoffs, Lehman Bros., Lehman Brothers
UK lender Barclays has released a statement that said it is considering whether to hire employees from Lehman Brothers’ European operations, in the wake of its agreement to acquire the failed investment bank’s U.S. broker/dealer business.
Barclays Capital, the lender’s investment banking arm, has cited the equities and equity capital markets businesses as probable target areas. Bank management is looking to capitalize on an opportunity to bring new talent on board from the U.K. and Europe.
The statements from Barclays will give hope to many of the 4,000+ who were employed by Lehman’s London offices.
September 16th, 2008 — Citibank, Economy, Lehman Bros., Lehman Brothers, Market Crash, Market News
Citigroup and The Bank of New York are trustees to about $138 billion of Lehman Brothers debt. The two companies are at the top of the failed brokerage’s list of unsecured creditors, according to the petition filed New York bankruptcy court yesterday.
Citi, which is also having trouble of its own with exposure to mortgage-backed securities and rising loan losses, released a statement on Monday saying that the firm had strong liquidity and capital positions.