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Lehman's $8B Transfer of Funds to US Irks Brits
British bankruptcy administrators want cash returned, say probe might be warranted
By Jim O'Neill
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Posted Sep 22, 08 9:02 AM CDT
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(Newser)
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An $8-billion transfer from Lehman Bros.' European headquarters to its New York headquarters on the day the firm declared bankruptcy is raising issues on both sides of the Atlantic. As the sale of Lehman's US operations to Barclays was approved Saturday, the administrators of the company's bankruptcy filing in Great Britain were demanding that the money be returned, reports the Wall Street Journal, saying it belongs to clients and employees.
Meanwhile, Japanese investment bank Nomura Holdings is rumored to be in line to buy Lehman’s European operations, after picking up its Asian assets for $225 million. The US bankruptcy judge decided to approve the Barclays sale despite concerns about the $8 billion, which Lehman officials said was a routine transfer.