Statement on Proposed Lehman Brothers, Inc. Acquisition by Barclays
FOR IMMEDIATE RELEASE
Washington, D.C., Sept. 17, 2008 — Since the decision by Lehman Brothers Holdings, Inc. to file for bankruptcy protection on Sunday, Sept. 14, 2008, the Securities and Exchange Commission has moved swiftly to protect investors' securities and cash. Since Sunday, the SEC has worked closely with lawyers and representatives of Lehman, Barclays, and other interested parties, as well as other U.S. and international regulators, including the U.K. Financial Services Authority, to arrange for the orderly transfer of customer accounts. The announcement that Barclays Capital plans to acquire the business and assets of Lehman Brothers, Inc., the U.S. brokerage arm of the consolidated holding company will, if approved by the U.S. bankruptcy court, provide for the resolution of all of Lehman Brothers, Inc.'s U.S. operations.
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."
The SEC is leading the U.S. government's efforts to assure the prompt and orderly transfer of Lehman's customer accounts to another broker-dealer with as little disruption as possible to customers. Together with the Federal Reserve Bank of New York, bankruptcy counsel, SIPC, and FINRA, as well as other regulators and interested parties, the SEC has been working to address the issues generated by the filing for protection under Chapter 11 by the broker-dealer's parent company. SEC staff from the agency's Washington D.C. and New York City offices remain on-site at Lehman headquarters in New York and at the Federal Reserve Bank of New York.
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.