Barclays Wins Court Ruling Over Lehman Assets


Due to the speed by which Barclays PLC (NYSE:BCS) (LON:BARC) moved in 2008, the Second U.S. Circuit Court of Appeals acknowledged that “ambiguities and loose ends were inevitable.” However, documents related to the deal clearly showed that Barclays was entitled to the contested assets according to the ruling today.

Past payments to Barclays will not change

James W. Giddens, the trustee whom is winding down Lehman Brothers Holdings Inc Plan Trust (OTCMKTS:LEHMQ) has funds available in the event of today’s ruling and also said that payments already made to customers and creditors in the past won’t be affected.

“We are studying the decision closely,” Mr. Giddens said Tuesday in a statement. “Our focus remains on winding-down the estate, making distributions from the general estate as promptly as possible and protecting claimants’ interests and due process rights.”

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Barclays PLC (NYSE:BCS) (LON:BARC) has yet to comment on the ruling as of this writing.

The once giant brokerage technically was not allowed to file for bankruptcy so following its collapse Sept. 15, 2008, a bankruptcy judge approved of a sale to Barclays which closed just a week later.

The last $3 billion

At issue between the two firms following the sale was $1.9 billion in securities and about $4 billion held to secure the brokerage’s exchange-traded derivatives.

Not included in today’s ruling is the dispute between Mr. Giddens and Barclays PLC (NYSE:BCS) (LON:BARC) over money in customer reserve accounts that was settled after the court declined to hear the case. That finished with a settlement of $769 million that Giddens paid Barclays.

Mr. Giddens, as of last week, had already distributed over $105 billion to roughly 111,000 former customers. According to the trustee, he still has over $3 billion to be distributed to creditors beginning in September but how much of that money that will be paid out remains a mystery.

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While studying economics, Brendan found himself comfortably falling down the rabbit hole of restaurant work, ultimately opening a consulting business and working as a private wine buyer. On a whim, he moved to China, and in his first week following a triumphant pub quiz victory, he found himself bleeding on the floor based on his arrogance. The same man who put him there offered him a job lecturing for the University of Wales in various sister universities throughout the Middle Kingdom. While primarily lecturing in descriptive and comparative statistics, Brendan simultaneously earned an Msc in Banking and International Finance from the University of Wales-Bangor. He's presently doing something he hates, respecting French people. Well, two, his wife and her mother in the lovely town of Antigua, Guatemala. <i>To contact Brendan or give him an exclusive, please contact him at [email protected]</i>
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