News Column

Barclays Assessing US Court Decision On Lehman Brothers

August 6, 2014

Sam Unsted

LONDON (Alliance News) - Barclays PLC Wednesday said it will continue receiving legal advice and will work to evaluate the potential financial impact of the decision made by the US Court of Appeals for the Second Circuit on Tuesday regarding Lehman Brothers Holdings Inc.

The court ruled the bank will be entitled to around USD6 billion in disputed assets as part of its acquisition of Lehman's brokerage unit at the height of the financial crisis in 2008.

The decision will be a setback for Lehman creditors, who have been working to recoup money.

The dispute centres on how to dispose of 'cash' assets held by the brokerage, which was acquired by Barclays following Lehman's collapse into bankruptcy in September 2008. This includes around USD4 billion in margin assets held by third-parties and USD1.9 billion in clearance box assets used to process securities trades.

The ruling handed down by the appeals court upholds a ruling from July 2012 that Barclays is entitled to both the margin assets and the clearance box assets.

Barclays shares were down 2.6% to 216.02 pence on Wednesday, putting it among the top five fallers on the FTSE 100.

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Source: Alliance News

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