Lehman

Lehman Overview: Lehman Brothers, founded in 1850, has long been one of the most respected firms on Wall Street. Its bankruptcy filing on September 15, 2008 set off a major crisis of confidence in the international financial system, resulting in days of massive price declines in worldwide equity and debt markets.

Starting on September 22, 2008, the North American operations within these Lehman units reopened for business under the ownership and name of Barclays:

  • Fixed Income and Equity Sales
  • Trading and Research
  • Prime Services
  • Investment Banking
  • Principal Investing
  • Private Investment Management

Nomura Holdings of Japan acquired these segments of Lehman, after regulatory approvals:

  • Asia Pacific Division
  • Europe and Middle East (equity and investment banking only)

Lehman reports continuing discussions aimed at selling its investment management division to an undisclosed buyer.

Size: Lehman reported these key statistics as of June, 2008:

  • Global Headcount = 26,189
    • Headcount Moving to Barclays = 10,000
    • Headcount Moving to Nomura = 5,500
  • Assets Under Management = $277 billion
  • Private Equity = $30 billion

Outlook: Lehman is in the process of liquidating itself, with no intention of reorganizing. As evidence that a once-vaunted name also lost all its value, Barclays acquired rights to the Lehman name but does use it.

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