Barclays may finally invest in Lehman, now it that it is road kill. According to the Wall Street Journal, the British bank is taking Lehman’s brokerage business and leaving the awful mortgage securities behind for creditors to disperse with. In doing so, 10,000 Lehman employees will keep their jobs.
WSJ: Lehman Brothers Holdings Inc. Monday night was negotiating a last-minute plan to sell large portions of itself to Barclays PLC, the U.K. bank that has been circling the U.S. investment house. Barclays Americas Chairman Archibald Cox Jr. was leading the talks, and an agreement is hoped to be reached by Tuesday, said a person involved in the talks.
Lehman’s top executives were huddled at the bank’s Manhattan headquarters trying to craft a plan that would preserve many Lehman jobs and operations, say people briefed on the discussions.
A deal wasn’t certain, and many questions remain, chief among them, the price that Barclays might pay for Lehman, whose holding company is now in Chapter 11 bankruptcy protection. That structure allows it to sell off other assets without liquidating, and gives it additional time to reach an agreement.
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