Barclays deal with Lehman Brothers was ‘best possible’, witness claimed

25 August 2010

A Barclays executive has claimed that the deal offered to the bankrupt Lehman Brothers was the best possible, a news report has claimed.

Mark Shapiro, head of global restructuring and finance group at Barclays Capital, made the comments when the trial resumed on August 23rd, Reuters reported.

Lehman Brothers launched a law suit against Barclays after it claimed that the latter used the instability within the markets to gain an $11.2 billion windfall from its acquisition of the failed bank’s brokerage division.

Kimberly Macleod, spokeswoman for Lehman Brothers, told the news provider: “There was nothing new in his testimony that disputes our case.

“The court was not informed about crucial changes to the asset purchase agreement when it approved the sale, and therefore the court approved a sale that was very different than the one that was consummated."

Barclays has denied the allegations that it benefited from a financial windfall and claimed that all parties were aware of the details of the deal when it went ahead.

Lehman Brothers filed for bankruptcy in September 2008.

By Jim Ottewill

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