Lehman: Gimme Dem Assets, Barclays!
Call this "too little too late" or the last desperate stab at scraping what's left from the carcass, who can say?
Lehman Brothers Holdings Inc. said Barclays Plc got a $5 billion discount when it bought the North American brokerage business and some real estate days after Lehman’s bankruptcy filing a year ago, and wants assets back.
“Material components of the transaction were not disclosed to the court before and at the sale hearing,” lawyers for Lehman said in a filing yesterday in U.S. Bankruptcy Court in Manhattan. “The fact is that the deal was actually structured to give Barclays an immediate and enormous windfall profit. Certain Lehman executives agreed to give Barclays an undisclosed $5 billion discount off the book value of securities.”
Lehman said Barclays’ windfall may have been more than $8.2 billion when margin deposits and liabilities Barclays assumed are taken into consideration. Lehman filed the largest bankruptcy in U.S. history on Sept. 15 with assets of $639 billion.
The collapsed bank is asking U.S. Bankruptcy Judge James Peck to revise the deal and force Barclays to return assets to Lehman’s estate and give it the opportunity to pursue claims for breach of contract, breach of fiduciary duty and unauthorized transfer of assets.
Oh snap! You really don't want to fuck with the "fiduciary duty", just ask LandAmerica.
Hell yeah they got a discount, Lehman, that's called "FAILING miserably" and is what happens when you cross Goldman Sachs. Duh, you should have known that part.