Wednesday, September 17, 2008
The SEC issued a statement on the proposed acquisition by Barclays of Lehman Brothers, the U.S. brokerage arm of the investment bank. SEC Chairman Christopher Cox said, "This is welcome news for every one of Lehman's customers. If approved by the court, customers will be able to look forward to an immediate transition of their accounts. Even before the transaction is completed, they will benefit because the broker-dealer and 10,000 Lehman employees will be able to continue their work with clarity about their future, and with greater funding resources for the broker-dealer's operations."
Under the terms of the transaction as proposed, in addition to Barclays acquiring the U.S. business and operating assets of Lehman Brothers, Inc., the transaction includes the Lehman Brothers headquarters building in New York City. The transaction is subject to approval by the bankruptcy court.