Lehman Brothers and the collaboration with Barclays for their UK staff

Barclays announced to Lehman Brothers UK staff that it might include some of the investment bank's London operations in a deal to buy the business. John Varley, Barclays chief executive, said the bank had “opportunities but no obligation to buy parts of Lehman outside the US. We have acquired assets in the US and we are now looking quickly and seriously to see what might fit with the businesses we have around the world." Barclays agreed a $1.75bn (£980m) deal to buy Lehman Brothers. Lehman Brothers Bank collapse last Monday.

According to Barclay’s announcement the deal secures about half the revenue of the old Lehman Brothers and it will save around 10,000 jobs on Wall Street. According to Bob Diamond, Barclays president, “the deal was a once in a lifetime opportunity for Barclays. We wouldn't want to miss the opportunity to add some talent from the UK and Europe."

With this agreement Barclays could be one of the leading banks on Wall Street, with a deadline a week to complete the deal. Barclays will pay $250m cash for the agreement. Barclays is paying $1.5bn for the Lehman headquarters, north of Times Square in New York, and two data centers in New Jersey. Lehman’s Brothers operations in the UK were put into administration with their staff into shock when last Monday they’ve been told that they‘ve lost their jobs. According to Bob Diamond "we will now have the best team and most productive culture across the world's major financial markets, backed by the resources of an integrated universal bank."