Lehman Brothers ban collapse threatens thousands of jobs

Sep 15 2008 by Alistair Houghton, Liverpool Daily Post

“As far as UK high street banks are concerned, they have been recapitalising themselves in the last few months.

“Whilst it’s not going to be a particularly comfortable day, the issue is one of a major US investment bank which has got into difficulty.

“No UK bank is in a similar situation.”

In the UK, Lehman employs staff at its regional headquarters in Canary Wharf, London. It also has an office in High Wycombe, Buckinghamshire, which is a subsidiary called Capstone Mortgage Services.

As part of the UK administration, PWC said a number of Lehman group companies remained solvent and will continue to trade.

These companies include Lehman Brothers Asset Management (Europe), as well as others which manage property portfolios and loans.

Chapter 11 bankruptcy gives companies time to reorganise and work out a plan to pay creditors over time.

Under the terms of its bankruptcy petition, Lehman Brothers’ holding company, Lehman Brothers Holdings International, is still pursuing the sale of its broker-dealer operations, as well as its investment management division.

Another subsidiary, Lehman Brothers Asset Management, will also not be subject to the petition.