Lehman Brothers may be able to launch law suits against financial service providers, including Goldman Sachs and Barclays, which purchased discounted assets after its collapse, a legal examiner has said.
Anton Valukas made the comments as part of a 2,000 page report into the failure of the bank.
In the paper, Mr Valukas stated that Lehman Brothers lost $1.2 billion through selling a number of deposits in derivatives to the banks.
He said: “The examiner concludes that an argument can be made that the transfers at issue were fraudulent transfers.”
The bankruptcy expert added that the trustees of Lehman Brothers may be able to make claims for the money to be returned against any of the firms, such as Barclays, DRW Trading and Goldman Sachs, which took advantage of the discounted positions.
Lehman Brothers may also be able to launch legal proceedings against Chicago Mercantile Exchange (CME), the trading exchange which conducted the sale.
According to the report, Goldman Sachs acquired an additional $450 million on equity trades and $150 million from gas positions.
Barclays received $335 million in additional funds from energy trades.
Showing posts with label Barclays. Show all posts
Showing posts with label Barclays. Show all posts
Friday, April 16, 2010
Wednesday, December 9, 2009
Barclays denies secret $5bn profit from Lehman Brothers buyout
Barclays has defended itself against allegations it concealed important information to make a secret $5 billion windfall profit following its purchase of Lehman Brothers last year.
Last month, a lawsuit alleged that the British bank had arranged the sale in order to make a quick profit and concealed the real value of the assets it was taking on from creditors and investors in Lehman Brothers.
But lawyers from Barclays have hit back, saying that it was public knowledge that the bank was paying under the odds for the assets in light of Lehman Brothers' bankruptcy filing, reports Bloomberg.
"The [creditors] committee merely wishes to renegotiate now a deal that it fully understood and approved of more than a year ago," its lawyers said in a court filing.
Barclays bought out Lehman's broker-dealer business last year for $1.75 billion, a deal from which it has since recorded a net gain of $4.2 billion.
The case against Barclays centres around allegations that it was given a secret $5 billion discount on the book value of securities transferred to it by executives who realised they would be working for the UK bank once the deal went through.
Last month, a lawsuit alleged that the British bank had arranged the sale in order to make a quick profit and concealed the real value of the assets it was taking on from creditors and investors in Lehman Brothers.
But lawyers from Barclays have hit back, saying that it was public knowledge that the bank was paying under the odds for the assets in light of Lehman Brothers' bankruptcy filing, reports Bloomberg.
"The [creditors] committee merely wishes to renegotiate now a deal that it fully understood and approved of more than a year ago," its lawyers said in a court filing.
Barclays bought out Lehman's broker-dealer business last year for $1.75 billion, a deal from which it has since recorded a net gain of $4.2 billion.
The case against Barclays centres around allegations that it was given a secret $5 billion discount on the book value of securities transferred to it by executives who realised they would be working for the UK bank once the deal went through.
Friday, May 15, 2009
Barclays in talks to sell asset-management arm for $10B
BlackRock and Bank of New York Mellon are reportedly potential bidders for Barclays Global Investors, Barclays' asset-management division. An initial auction for BGI's exchange-traded funds unit, iShares, resulted in negotiations over the potential sale of BGI. Last month, Barclays agreed to sell iShares to CVC Capital Partners, but the bank can seek alternative bidders under the sale's "go-shop" provision.
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