It's sad , sad day when Wall St, is exported to England

[SusieK 3]

At least someone came to the rescue - dont know what the big deal is actually - there are international , have ties with Bank Of America - otherwise they would be sitting with empty offices me thinks today!

[kaydee457 13]

Those Brits are very clever. I've read that when they were in talks to buy Lehman that after understanding that there would absolutely be no government bailout for this firm, they simply pulled out of the talks and waited for Lehman to file for Bankruptsy knowing that they'd get what they wanted for a song......sweeeeet.......I love a shrewd deal!

More interesting is that they paid a price for the capital assets in NYC and Jersey of Lehman but we'll see if they don't sell them off at a premium sometime in the near future......

Lehman unloads its banking divisions to Barclays

Wednesday September 17, 8:12 am ET

By Joe Bel Bruno and Stephen Bernard, AP Business Writers

Barclays gets Lehman's North American banking and capital markets units for a Wall Street song

NEW YORK (AP) -- Lehman Brothers, which a year ago had a market capitalization of more than $33 billion, is now unloading its once-prized businesses for what passes as pocket change on Wall Street.

Barclays PLC, the third-largest British bank, took advantage of Lehman Brothers Holdings Inc.'s bankruptcy reorganization Tuesday to reach a deal for Lehman's North American investment banking and trading operations for just $250 million.

Barclays also picked up Lehman's New York headquarters and two data centers in New Jersey for $1.5 billion.

It marks a major coup for the U.K. bank, which agreed to buy the assets just days after walking away from a deal to purchase all of Lehman.

The U.S. investment bank filed for bankruptcy protection on Monday after it was unable to find financing or fresh capital to shore up its balance sheet amid a continued downturn in the credit markets.

The deals require approval from the bankruptcy court.

Meanwhile, Lehman executives continue to negotiate a potential sale of its prized investment management division, which includes money manager Neuberger Berman. The division was once valued by as much as $10 billion by Wall Street analysts, but now could fetch much less considering Lehman's bankruptcy proceedings.

A person familiar with the negotiations, who spoke on the condition of anonymity because the talks are ongoing, said Lehman was focusing on trying to sell the business to private-equity firms. The sale is expected to happen in a matter of days, the person said.

Bain Capital and Hellman & Friedman are the two top private-equity shops bidding on the investment management division, the person said, but Kohlberg Kravis Roberts & Co. is still in the running.

Barclays said it will acquire Lehman's North American banking operations, which include fixed income and equities sales, trading and research and investment banking business. The deal throws a lifeline to about 10,000 employees working in the divisions.

Barclays and Lehman reached the agreement hours after Lehman's first bankruptcy hearing in a crowded courtroom at the U.S. bankruptcy court in Manhattan, just steps away from Wall Street's iconic bull statue.

JPMorgan advanced Lehman $87 billion when the market opened Monday, acting in part on a request by the Federal Reserve Bank of New York. The New York Fed later repaid JPMorgan that amount. On Tuesday, JPMorgan advanced another $51 billion.

Shai Waisman, a lawyer for Weil, Gotshal & Manges, LLP representing Lehman Brothers, in his opening statement argued that Lehman's Brothers' downfall was the result of a "chain reaction" of events that were largely out of the investment bank's control.

"Lehman operated in an extremely unfavorable business environment," Waisman said, referring to declining asset values and low levels of liquidity.

Judge James Peck approved a motion that JPMorgan Chase & Co. will remain Lehman's clearing house through the bankruptcy proceedings. The issue arose over the past two days, when JPMorgan made the advances to Lehman to allow it to keep trading and "avoid a disruption of the financial markets," according to court filings.

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.

[Mr. Big Dog 10,747]

The bank may have its roots in London but as A.J. said is a major international bank these days. It's managed to stay in business since 1690 so I'd say its a good day for Wall St.

Yes, but the mother ship is based in London......Given that, over time they could migrate all of Lehmans business operations to London. It's been done before with other aquisitions.....especially given the atmosphere here where the democrats, and the replulicans are going to overreact and hog tie Wall St.

I see a move out of the US for investment banking and a loss of a cornerstone sector here in the US.

Yeah, sure. I can just see how they're aching to drive up their operating cost by moving operations to one of the most expensive places on earth.

Really... London is more expensive than NYC.

It's hardly good news for their folks in London - I suspect those guys are shitting a brick right now.

I know it is. We're actively migrating whatever possible away from London.

To where? Tampa? No comparison to the cost of doing business in NYC, particularly Wall St. and vincinity........

Currently, Belfast, Warsaw and Budapest are more likely destinations for migrations from London. Migrating business operations from NYC to London would make very little sense from a cost perspective. Despite NYC being a rather expensive place to do business, London is even worse in that respect.

[rocks 494]

Those Brits are very clever.

thanks

seriously though, i don't see why there is such an issue over nationality? surely it is a good thing that they got saved?

[almaty 19]

thanks to the Brits..

[pedroh 21]

because foreign investors hate america...

[rocks 494]

because foreign investors hate america...

ya, that's why they're investing, right? they hate america so logically they hand over all their cash?

[pedroh 21]

because foreign investors hate america...

ya, that's why they're investing, right? they hate america so logically they hand over all their cash?

exactly.. and they will impose their culture on Americans..

is like the ayrabs who wanna buy the Chrysler tower, oh noes, the outrage, soon they'll be selling shoarmas and kebabs in NY.. because there's no ayrab munchies in NY yet..

[rebeccajo 14]

The bank may have its roots in London but as A.J. said is a major international bank these days. It's managed to stay in business since 1690 so I'd say its a good day for Wall St.

Yes, but the mother ship is based in London......Given that, over time they could migrate all of Lehmans business operations to London. It's been done before with other aquisitions.....especially given the atmosphere here where the democrats, and the replulicans are going to overreact and hog tie Wall St.

I see a move out of the US for investment banking and a loss of a cornerstone sector here in the US.

That just doesn't make a lick of sense.

Hell, what difference does it make where the 'mother ship' is anyway. It matters more who the big depositors and the stockholders are. And for ages, LOADS of the money invested in US banks has come from abroad.

Hmm, what diff? Well loss of tax revenues for one. NYC mayor is already complaining that NYC will be in dire straits in the near future without those revenues.

Jobs for number two (of course integrally linked to number 1), and I'm sure there are others.....

It's kind'a expensive in NYC and so perhaps they'll export some of their operations to Singapore, or India, who knows?

They don't need to keep the "brick and mortar" presence at the same levels in the US because they're purchasing the assets of this company.

Perhaps just a cursory presence will do. Only time will tell.......

Mergers and aquisitions always result in duplication of services between the two companies and this will be no different. There will be job losses due to absorbing Lehman, it's just a matter of how many and when.

The mayor doesn't need to be whining about the lost tax revenues until he sees if Barclays/Lehman physically pulls out.

All this fuss about investment bankers potentially losing their jobs due to international acquisitions. It's a damn freakin' shame when the same thing that's been happening to the middle-class blue collar worker for 20 years finally comes home to roost, ain't it?

Looks like not all $hit rolls downhill, after all.

[rocks 494]

exactly.. and they will impose their culture on Americans..

is like the ayrabs who wanna buy the Chrysler tower, oh noes, the outrage, soon they'll be selling shoarmas and kebabs in NY.. because there's no ayrab munchies in NY yet..

[IAMX 3,055]

How about when your government is owned by Saudi Arabia?

[rebeccajo 14]

Currently, Belfast, Warsaw and Budapest are more likely destinations for migrations from London. Migrating business operations from NYC to London would make very little sense from a cost perspective. Despite NYC being a rather expensive place to do business, London is even worse in that respect.

Cool.

We'll just move back.

[kaydee457 13]

How about when your government is owned by Saudi Arabia?

Just demonstrates your profound ignorance concerning other cultures and their customs.......

[Trumplestiltskin 5,791]

How about when your government is owned by Saudi Arabia?

Or China.

[Trompe le Monde 1,107]

I have a friend who works in Lehmans in London who was let go, as was most of the current staff as I understand it. Apparently that part of canary wharf is a ghost town.

Edited September 17, 2008 by rkl57