Lehman Brothers’ European fixed-income division is to be wound down with the loss of 750 jobs after talks to find a buyer for the division foundered.
Bidders failed to agree on how to co-operate with administrators on the liquidation of the rest of the failed investment bank.
PwC, the administrator to Lehman’s European business, had been in talks with Nomura, the Japanese bank, and another party over the past week in the hope of securing a deal following last week’s agreement by Nomura to buy Lehman’s equities and corporate finance businesses in the region.
Tony Lomas, partner at PwC, said: 'It is extremely disappointing that despite exhausting all avenues these jobs could not be saved.'
The departing staff will be paid until the end of September. Claims for severance, accrued bonuses and unpaid expenses will rank alongside other Lehman creditors.
The remaining staff will assist PwC in unwinding Lehman’s extensive positions.
Financial Times, Daily Telegraph