Posted on 09/21/2008 3:06:14 PM PDT by LiveFreeOrDie2001
Fury at $2.5bn Lehman bonus Nomura and Barclays table bids today for US giant’s London operation as bank’s administrator likens collapse to EnronJohn Waples and Danny Fortson STAFF at Lehman’s New York office who helped to cause the world’s biggest corporate bankruptcy are to share in a $2.5 billion bonanza. The bonus, which has been described by London staff as a “scandal” has been pledged by Barclays Capital, the British-based bank that last week acquired Lehman’s American operation and took on 10,000 staff. The $2.5 billion (£1.4 billion) pot, which has been ring-fenced as part of the acquisition, has caused huge resentment among the 5,000 staff in the firm’s European and Middle Eastern operations who are not guaranteed to be paid after this month. There are, however, hopes that half the jobs in Lehman’s Canary Wharf office could be saved today by either Barclays or Nomura. Bids are being submitted for its UK equities and investment-banking business. A Chapter 11 bankruptcy document filed by Lehman Brothers Holdings Inc says that Barclays has identified eight individuals out of the New York staff of 10,000 who are vital to make the deal succeed and a further 200 who are identified as “key”. It is thought that these eight directors will be locked into two-year contracts worth between $10m and $25m a year. Related Links Paulson hailed as hero for stemming market slide A sickening slump gives way to euphoria The $2.5 billion had been accrued as part of the contribution to Lehman’s group profits for the first nine months of the year. Barclays said there is no obligation to pay it out but analysts say the competitive pressure to keep key staff means he will have to. p>
(Excerpt) Read more at business.timesonline.co.uk ...
Actually it looks like the Bank of England (AKA..the British Government). “On 30 August 2007, Barclays was forced to borrow £1.6bn ($3.2bn) from the Bank of England”
The $2.5B is coming from Barclays and Nomura, correct...not from the US Gov’t.?
Of course Barclay's would want to keep them on.
The reason Lehman went down so fast was a vicious attack of short-selling. Sure, they had problems and MAY have fizzled anyway but the shorts were in control that week and Lehman had no time to do anything but declare bankruptcy.
I was thinking of investing in them myself.
Though I would wait to see how deep the UK goes into contraction.
“So it’s noneja business.”
Those Noneja Business ladies must be from a large extended family all with the same name, like George Foreman’s family.
I’ve meat a lot of them before. When I ask their name they’re very rude after introducing themselves, mostly walking away.
Bump for later
Ya need a damned lawyer to read the prospectus
No, there is absolutely no tax payer or government money involved in any of this.
STAFF at Lehman’s New York office who helped to cause the world’s biggest corporate bankruptcy are to share in a $2.5 billion bonanza.
The bonus, which has been described by London staff as a “scandal” has been pledged by Barclays Capital, the British-based bank that last week acquired Lehman’s American operation and took on 10,000 staff.
The $2.5 billion (£1.4 billion) pot, which has been ring-fenced as part of the acquisition, has caused huge resentment among the 5,000 staff in the firm’s European and Middle Eastern operations who are not guaranteed to be paid after this month.
There are, however, hopes that half the jobs in Lehman’s Canary Wharf office could be saved today by either Barclays or Nomura. Bids are being submitted for its UK equities and investment-banking business.
A Chapter 11 bankruptcy document filed by Lehman Brothers Holdings Inc says that Barclays has identified eight individuals out of the New York staff of 10,000 who are vital to make the deal succeed and a further 200 who are identified as “key”.
It is thought that these eight directors will be locked into two-year contracts worth between $10m and $25m a year.
The $2.5 billion had been accrued as part of the contribution to Lehman’s group profits for the first nine months of the year. Barclays said there is no obligation to pay it out but analysts say the competitive pressure to keep key staff means he will have to.
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Paragraphs are so much easier on the eyes.
9% out of 100% is bound to create a positive scenario in a free society driven by the elite knowers of all in Congress. /s
If I could at this point I would invest my money in them as well. I would rather put my money toward a British owned company than trust the Chinese who own a huge chunk of our mortgages.
What caliber attorney?
$50/hr or $1000/hr?
Or perhaps a caliber in between.
Thank God for attorneys. /s
What business decision? Rewarding incompetence with a $2.5 Billion payout?
Pay them off in Lehman Bros stock options.
“It’s what they work for during the year and how you get them to do the work.”
LOL....what work?? Enabling socialism?
AGREED
I cot a caliber for lawyers... .308
Are you suggesting these greedy bustards had nothing to do with the current mess on Wall Street? It’s not free market economics when corruption and poor decisions by private companies are subsidized by tax payer money.
Very interesting....
I say we pay them off in lengths of stout hempen rope and lamp posts...
L
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