Lehman sues Barclays over windfall profits

[maddezmom]

Source: Reuters

Reuters) - Lehman Brothers Holdings Inc has filed a lawsuit against Barclays Capital Inc alleging the British bank took control of excess assets in collusion with Lehman executives when it bought its U.S. brokerage business a year ago, court documents show.
Lehman filed for bankruptcy on September 15, 2008, in the largest U.S. bankruptcy in history. Its flagship U.S. brokerage business was sold to Barclays less than a week later in a hurriedly assembled deal.

Lehman said in September this year that Barclays Capital got an $8.2 billion "windfall profit" due to the fire sale of its business for an undisclosed $5 billion discount off the book value of securities transferred to Barclays.

"The windfall to Barclays was not disclosed to the Court, the Lehman Boards or Lehman's lawyers so as to allow the transfer to Barclays of billions of dollars in excess assets, without consideration, in a manner designed to avoid judicial, corporate and creditor oversight," Lehman said in a Monday court filing.



Read more: http://www.reuters.com/article/newsOne/idUSTRE5AG0YB20091117

[Demeter]

1. Popcorn Time!

:popcorn: Cannibalism among the Financial Giants!

[RedCloud]

2. Exactly. Let the rich duke it out for our amusement.

here is my concerto for the "loser":

:nopity: :nopity: :nopity: :nopity:
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