The rump of the defunct Wall Street bank Lehman Brothers has accused Barclays of milking its collapse to the tune of $8.2bn by securing a "secret" windfall on the purchase of its US operations from bankruptcy, the Guardian reports.
On the first anniversary of Lehman Brothers' demise, lawyers for the bank's estate filed an application at a Manhattan bankruptcy court seeking a refund of billions of dollars from Barclays.
The legal filing alleges that Barclays' purchase of Lehman's investment banking business was based on an "undisclosed distortion" of the Wall Street firm's securities and that some of those who negotiated the deal had an interest in securing jobs at Barclays. Full story...
THE European Commission has warned Lloyds Banking Group that it may have to split off Halifax as punishment for the billions of pounds of state aid that it has received.
Neelie Kroes, the Competition Commissioner, has yet to make a final decision, but banking sources say it is clear that she is planning to impose draconian penalties on Lloyds.
Ms Kroes is understood to have rejected Lloyds' attempt to limit the remedial action it must take to selling Cheltenham & Gloucester and making limited disposals in Scotland.
Instead, the Commission has said that it wants Lloyds, the UK's largest retail bank, with almost one third of the market, to give up far more of its empire. Full story...
THE administrator of Lehman Brother's European operations has warned winding them up "may take a decade", the BBC reports.
PricewaterhouseCoopers (PWC) partner Tony Lomas has been leading the attempts to sort out Lehman's European network of trades and investments.
"This has been the most complex insolvency case I have ever dealt with and am ever likely to," Mr Lomas said.
So far the team has recovered £5.5bn, but Mr Lomas added that there are "many billions" still left to recover. Full story...
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