View more on these topics

Barclays buys part of Lehman Brothers

Barclays has acquired Lehman Brothers North American investment banking and capital markets businesses.

Barclays will acquire trading assets with a current estimated value of £40bn and trading liabilities with a current estimated value of £38bn for a cash consideration of £0.14bn.

Barclays will also acquire the New York headquarters of Lehman Brothers as well as its two data centres at close to their current market value.

Barclays says shareholders have expressed support for the transaction and interest in increasing their shareholdings in Barclays. The board of Barclays expects these discussions to lead to a subscription of at least £0.6bn of additional equity.

John Varley, chief executive of Barclays Group, says: “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.

“This transaction delivers the strategic benefits of a combination with Lehman Brothers core franchise, whilst meeting Barclays strict financial criteria, and strengthening our capital ratios.’

Recommended

AR firms at risk from limited PI cover

Professional indemnity brokerage PYV is warning appointed representatives that they risk being left without cover if their network folds.

Pink boss calls for FSA regulation

Neil Hoare, associate director of marketing and IT at Pink Home Loans, is calling on the Financial Services Authority to regulate secured loans. He says: “Pink has always held a strong view that the sector is becoming more regulated and that the secured loans industry should be a part of the advice process.”

King’s the top dog now

When Sir Howard Davis, founding member of the Financial Services Authority was top dog at the regulator he liked to describe his role as Gordon Brown’s representative here on earth. It was a tongue in cheek observation but one symptomatic of the man’s self-confidence and the moral authority of the chancellor. I don’t think John […]

Newsletter

News and expert analysis straight to your inbox

Sign up