Barclays Bank Target Further Lehman Raids

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Barclays Bank Target Further Lehman Raids

Wed, 17 Sep 2008

Having acquired Lehman Brothers’ North American investment banking and trading operations unit, Barclays has revealed it may take on more of Lehman Brothers’ assets and employees. Barclays PLC confirmed yesterday that they had reached a $250 million deal to secure the North American unit, following Lehman Brothers Holdings Inc.’s bankruptcy reorganization. Group Chief Executive, John Varley, said that Barclays had ‘options, not obligations’ as they continue to look at divisions within Lehman Brothers. In addition to the North American unit, the bank have also bought Lehman’s New York headquarters and two data centres in New Jersey for a total of $1.5 billion, subject to court and regulatory approval.

Barclays President Robert D. Diamond Jr. confirmed that Barclays are mainly focusing on the US cash equities business, labelling the division as ‘an absolute machine, it’s extremely profitable’, Diamond said. He added, ‘We wouldn’t want to miss the opportunity to add some of the talent from the UK and Europe to the team. It would most typically be where Lehman has a strong position and Barclays Capital a weak position’. However, Barclays are also said to be interested in securing some of Lehman’s Asia-based assets, with today’s statement revealing Barclays are continuing ‘the execution of our strategy of diversification by geography and business in pursuit of profitable growth’.

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