Heidi Moore of DealJournal has the details on the Barclays acquisition announced at Lehman Brothers today. It’s being structured as an asset purchase, with Barclays taking this business but not any real estate assets or derivatives. More good news from Moore:
Barclays has reached an agreement to buy the U.S. capital-markets businesses of Lehman and as many as 9,000 Lehman employees will find jobs with the U.K. bank, according to people familiar with the situation. The Wall Street Journal earlier reported that Barclays would pay nearly $2 billion for a large chunk of Lehman.
The deal is to be put before a New York bankruptcy court judge for approval at 5 p.m. Lehman’s creditors are to meet at 6 p.m. An official announcement isn’t expected until Wednesday morning.
Barclays to Buy Lehman Investment Bank, Save 9,000 Jobs [Wall Street Journal]
Am I the only one who get the feeling that Bill Gross is de facto Fed Chairman?
Sweet.
@1 I think so
Too long, didn’t read.
Any chance that vendors for whom Lehman broker/dealer arm was a major client may continue to be used by them?
You think i’m the only one or you think Bill Gross is de Facto Chairman also?
Do you think they will take any Lehman Corporate employees to support the increased work force?
9,000 jobs is good, but that still means ~16,000 Lehman employees will be unemployed before the year’s end.
“Barclays won’t be buying any of Lehman’s real estate, real-estate-backed securities, derivatives positions or over-the-counter derivatives trades.”
That means goodbye to all of the IIT/MIT MS/MBA smart guys and the risk managers AND the technology they rode in on.
“as many as 9,000 jobs will be saved”. Sounds more like like as few as 2,000 .
@7 – No.
@7 Yes, I heard they plan on taking all of the HR team that supports the START program
what about lehman indices?? lehmanlive? lehman point?? fuckkkkk these were all usefull…
Good to hear at least a few are getting a second chance.
Isn’t Lehman’s Capital Market division mostly derivatives and structured products? Exactly what nobody wants?
What about F/X derivatives? Are they OK?
what about its broker-dealer operations overseas – have friends in asia
@ 12…those are assets, someone will buy’em.
let not your little heart be troubled.
HAM05 – I am assuming someone will take over administering the index (maybe BNY or SSGA?) There’s a few trillion in fixed income assets indexed to the Lehman Aggregate and other Lehman indices. No way they’re going to neglect that.
Deal is for US broker/dealer. According to LEH 10K, that the US business had about 17,000 employees at the end of November 2007. Of that 17,000, at least a few thousand are in IMD; that division is being sold separately. A good majority of the US employees will have jobs. Not sure about international though.
Does Barclays have equity research? will they keep Lehman’s equity research?
Won’t somebody please think of the Uncommon Values?
will the bankruptcy court approve this?
“Barclays would pay nearly $2 billion for a large chunk of Lehman.”
$2 Billion? is that all? What about the creditors? $2B won’t go very far, will it?
@11, you really think they’re taking the HR that supports the START team? i.e. does the START program even exist anymore?
Is the investment banking / corporate finance part of this business?
Barclays is probably taking some assets/liabilities with the purchase, but HoldCo debt is definately very hurt. Very, very hurt.
This is good/poor news for the LEH employees. Good news that employment is within reach. Bad news that you are now working for a commercial bank. And if you think things won’t change, ask the bankers and traders at BOA. The commercial bank ALWAYS comes first.
I maybe way off base here, but I’d think that Barclays would be pretty happy to get some ibank/corp fin group out of this, but the way things are looking for the next 2-3 years or so who knows
This is ground control to Lehman Bros
Close your excel spreadsheets
And turn your PC’s off
Since the bank is growing, think they’ll save any Lehman event planners?
Where’s Neuberger Berman? I bet Dick Fuld has Neuberger tied to a chair in a cabin deep in the Connecticut the woods saying “they can’t separate us. We’ll always love each other. Isn’t that right?”
is this good or bad for barcap employees?
@30 – Really? Event planners? I’m going to go with no. People with the meaty jobs are getting fired. Event planners are like HR. Superfluous.
@22: Agreed, seems too low for the creditors to even bother. I don’t see how an asset sale at fire sale prices is in the creditors’ best interests. At least in a reorganization they’d get some equity.
@ 1, I posted something to that effect days ago, when he was telling the world how the fed would nationalize fannie and freddie.
ok mates. keep a stiff upper lip, and all that sort of rot.
things will turn out! you’ll see!
right, then.
Sod off, swampies!
@ 22, 34, read the freaking story.
2 bil a down payment.
think OPM.
sheesh.
no, no. Two bill for the B/D operation, more for asset management. Then an orderly liquidation of the portfolio. And the creditors are close to being satisfied.
@33.
Ahhh, silly i-banker. HR runs the commercial banks.
It’s a new day, Sally.
@39 So true. that is the WORST thing about commercial banks (i worked at LEH for 6 years, where HR was actually superflous)At a comm’l bank, HR really does rule and it is so non-sensical I used to burn my stomach up over it. UGH.
I hear they are taking the Lehman softball team as well.
Who cares about LEH? Im more concerned with AIG, and you should be too
Has Dick Fuld made any comments yet? What a little bitch
39/40 – Shows your standing in the order. HR has no pull ANYWHERE, it’s a bullsh*t job.
@ 44
Only way possible that this is even remotely not absolutely ridiculous for Dick Fold to not have said anything yet is if he pulls off nothing short of an absolute miracle, and even then, its gonna take a damn good explanation (dramatic effect perhaps?)
@42 I agree with your final four words. But obviously you have never worked at a commercial bank. The equivalent of managing directors are often, bafflingly, subject to the whims of some HR bizatch. As for my stnding in th e”order” I run my own show, douchbag
I hear they are taking the Lehman softball team as well.
Who cares about LEH? Im more concerned with AIG, and you should be too
Has Dick Fuld made any comments yet? What a little bitch
42 44 you guys are a little naive. Your vision as HR as the people that do little more than plan the company picnic hasn’t been true for years. They spend a lot of time on compensation and benefits issues, which is very near and dear to senior management and the board. Also, when firings come, take the lead so its done in a way that doesn’t result in the firm being burned. I know, sounds like I’m there. Not even close, a banker like all of us, but I know what they do.
46 – not buying it HR girl! Now go send out the itinerary for the next happy hour.