Lehman Says Barclays Made Windfall Profits on Deal
http://www.bloomberg.com/apps/news?pid=20601087&sid=axX9PCd9qLd0
In a filing with the US Bankruptcy Court in Manhattan, failed bank Lehman Brothers has said that Barclays Plc got a significant discount on the purchase of former’s North American brokerage business and some real estate. Not only this, the material components of the deal were not disclosed before the court, Lehman Brothers’ lawyers have argued. Certain executives of the US giant agreed to give discount worth $5 billion to the UK bank on the book values of the securities. Barclays representatives, however, say that the claims by Lehman are opportunistic and the US company wishes to re trade the deal in the wake of the improved economic situation. Creditors in Lehman Brothers are in the meanwhile pressing that Barclays should return the assets of the former company. The assets of Lehman Brothers were sold off in a quick deal that was approved by the SEC and the Federal Reserve in a bid to calm the global stock markets. But was the decision appropriate or the pricing right?
