Barclays to buy part of Lehman ops
Barclays PLC said Tuesday it will acquire Lehman Brothers’ North American investment banking and capital markets businesses for $250 million in cash.
Lehman (LEH, Fortune 500) filed for bankruptcy protection Monday after it was unable to find financing or fresh capital to shore up its balance sheet amid the continued downturn in the credit markets.
Barclays (BCS) said it will acquire Lehman’s North American banking operations, which include Lehman’s fixed income and equities sales, trading and research and investment banking business. About 10,000 employees work in the divisions.
Barclays will also purchase Lehman’s New York headquarters and its two data centers in New Jersey for $1.5 billion.
.The third-biggest British bank had withdrawn from weekend talks with Lehman Brothers about a possible outright acquisition americashadvance faxless payday advances. There have been reports that Barclays can pick up the assets it wants for about $2 billion to $3 billion.
The deal must get approval from the bankruptcy court.
Also on Tuesday, the House Oversight and Government Reform committee said it would hold a hearing Sept. 25 to examine the "regulatory mistakes and financial excesses" that led to Lehman’s bankruptcy filing. It asked Lehman Chief Executive Richard Fuld to testify before the committee.