Barclays to get $1.1B from Lehman brokerage trustee

Barclays Plc, which bought Lehman Brothers Holdings Inc.'s North American business, will get $1.1 billion in trading assets from the trustee liquidating the remnants of Lehman's brokerage, the trustee's lawyer said.
APR 27, 2011
Barclays Plc, which bought Lehman Brothers Holdings Inc.'s North American business, will get $1.1 billion in trading assets from the trustee liquidating the remnants of Lehman's brokerage, the trustee's lawyer said. The two sides continue to dispute more than $1 billion in so-called margin assets, lawyer William Maguire told a judge today after he approved the partial agreement. The assets Barclays will get were held in so-called clearance boxes to clear trades and should have been transferred to the London- based bank in September 2008, according to court papers. “Could you reach agreement over more matters if I gave you more time?” U.S. Bankruptcy Judge James Peck asked Maguire today at a hearing in Manhattan. He agreed to hear arguments from the lawyers after Maguire said negotiations over the dispute had reached “the end of the road.” The agreement followed a trial last year that involved a three-way fight, with lawyer David Boies representing Barclays the U.K.'s third-biggest bank. Barclays said it was owed $3 billion on the brokerage purchase, and the trustee demanded about $7 billion from Barclays. The New York-based Lehman parent company sought an alleged $11 billion “windfall” it said Barclays made on the purchase. Peck denied the Lehman brokerage's claim and reduced the trustee's right to assets. A February ruling left Barclays disputing as much as $3.5 billion in assets. Lehman wrote a letter to the judge on April 29, saying it was claiming $500 million from Barclays for allegedly failing to pay all of the bonuses the U.K. bank agreed to when it bought the defunct investment firm's business. Barclays has said it paid all the promised bonuses and other compensation. --Bloomberg News--

Latest News

Trump account confusion is widespread among parents — and advisors have an opening
Trump account confusion is widespread among parents — and advisors have an opening

Only 7% of U.S. parents are "very confident" they understand how the Trump accounts work, says Omni Calculator

Receiver sues to recover alleged Traders Domain Ponzi profits
Receiver sues to recover alleged Traders Domain Ponzi profits

One transfer alone came to $5.6m, and the receiver says none of it was real profit.

SEC accuses S2A Modular founders of alleged $65 million investor fraud
SEC accuses S2A Modular founders of alleged $65 million investor fraud

Investors chose which factory to fund - the SEC says the money went elsewhere.

Ameriprise gets narrow relief from FINRA panel in latest recruiting dispute with LPL
Ameriprise gets narrow relief from FINRA panel in latest recruiting dispute with LPL

Ameriprise and LPL Financial for the past few years have engaged in a financial advice trade war.

Am I stuck? Rethinking career mobility at every stage
Am I stuck? Rethinking career mobility at every stage

Why advisors at every stage may have more leverage, flexibility, and strategic options than they realize.

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income