A RAFT of high-profile figures from Barclays and Lehman Brothers will appear before a US court over the coming fortnight in a case to determine whether the British bank underpaid for the American firm.
Bob Diamond, president of Barclays, will join former Lehman president and chief operating officer Bart McDade to run over Barclays’ dramatic buyout in September 2008.
Lawyers for the bankrupt Lehman estate accuse Barclays of making a secret $11bn (£7.3bn) “windfall” on its purchase of Lehman, which it snatched from the abyss at the height of the credit crisis.
In turn, Barclays is demanding $3bn in money it claims it is still owed from the transaction.
Boies, Schiller & Flexner, acting for Barclays, argues the Lehman estate is trying to “re-trade” the deal now markets have recovered and its claims are “unfair and legally barred”.
City A.M. Reporter