Barclays buys Lehman's capital markets business in the US
17 Sep 2008, Alastair Marsh, Risk magazine
The deal, described by Barclays president Bob Diamond as a once in a lifetime opportunity, will at a stroke position Barclays Capital as one of the leading investment banks in the US. The announcement follows Barclays decision to pull out from making a potential bid for Lehman Brothers at the weekend.
The deal includes the US fixed income and equities sales, trading and research and investment banking businesses of Lehman Brothers, including all of its derivatives businesses. The UK bank will also acquire Lehman Brothers New York head office near Times Square and two data centres in New Jersey for $1.5 billion.
In Europe, Barclays has opportunities but no obligations, says chief executive John Varley.
Barclays will inherit around 10,000 employees, as well as trading assets currently estimated at $72 billion and liabilities worth $68billion.
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