Lehman Brothers, or what’s left of it, wants a bankruptcy court to investigate whether last year’s panic-driven sale of the firm to Barclays added up to a massive profit for the British bank.
According to Bloomberg News, Bryan Marsal, the exec leading Lehman through bankruptcy, asked Barclays in the spring to explain how it made a profit on the deal wrote Barclays in March, asking the bank to explain how it made a profit on the purchase.
According to Bloomberg:
As part of the acquisition, Barclays received almost $4 billion in securities and cash from Lehman to pay liabilities such as equipment leases, severance and bonuses, said a person familiar with the matter who declined to be named. Later, when Barclays announced its financial results for 2008, the bank said it recorded a gain of 2.26 billion pounds ($3.47 billion) from the acquisition of Lehman’s North American operations, according to the court filing.
The bank may have paid only some of Lehman’s liabilities that it undertook to pay, or the liabilities may have been smaller than originally estimated, the person said. If so, Lehman wants its money back, the person said.