Lehman re-opens under Barclays ownership

September 22, 2008 10:28:55 AM PDT
Barclays PLC announced Monday that Lehman Brothers has begun to re-open for business under the ownership of Barclays Capital. More than 10,000 Lehman Brothers employees have been offered jobs in the new entity.These actions follow the Bankruptcy Court for the Southern District of New York's approval on Saturday of Barclays agreement to acquire Lehman Brothers' fixed income and equity sales, trading and research; prime services; investment banking; principal investing; and private investment management businesses in North America.

The integration process for our combined businesses began immediately after the court's decision. A significant number of employees from both organizations have been working tirelessly over the weekend to activate and integrate all our risk and trading systems following the bankruptcy of Lehman Brothers Holdings Inc. The process is still ongoing. This means that Lehman Brothers' sales and trading business will not be able to conduct business today. Lehman Brothers' banking and advisory functions are open for business. Lehman Brothers' capital markets and trading businesses will resume fully functional operations shortly.

Barclays Capital's existing businesses are fully functional and not impacted by this transaction.

Employment offers have been made to all employees of the Lehman Brothers businesses that have been acquired by Barclays Capital, including Lehman Brothers Private Investment Management business, transferring to Barclays Wealth, the wealth management arm of Barclays PLC.

The combined firm will use the Barclays Capital name. We have purchased the rights to use the Lehman Brothers name, and will consider opportunities to do so.

"The Barclays-Lehman Brothers partnership is now a reality," said Bob Diamond, President, Barclays PLC and Chief Executive of Barclays Investment Banking and Investment Management. "With all that our combined firm has to offer, we have a great business to tell our clients about. We have been delighted by the enthusiastic response of the senior Lehman Brothers executives to whom we have offered leadership positions in our combined firm. Together, we can be a truly powerful firm across all the global capital markets. Our story begins today."

"Teams from both companies have been working flat-out all weekend; the teamwork has been terrific, and we will be up and running very soon," said Rich Ricci, Chief Operating Officer of Barclays Investment Banking and Investment Management businesses.

"All of Lehman Brothers' partners are excited to join with Barclays Capital. We are confident the combination will provide a powerful client-driven franchise," said Bart McDade, President and Chief Operating Officer of Lehman Brothers.