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| Version 3 | Version 4 |
|---|---|
| Lehman staff set to get bonuses | Lehman staff set to get bonuses |
| (about 22 hours later) | |
| UK Lehman Brothers staff winding up European operations at the failed investment bank will get annual bonuses despite it being in administration. | |
| Just over 1,000 people still are employed by Lehman's administrators as they try to unwind the company's complex financial positions. | |
| The head administrator, Tony Lomas, also said some of the bank's creditors will likely lose their money. | The head administrator, Tony Lomas, also said some of the bank's creditors will likely lose their money. |
| However, it will take time before it becomes clear how much, he added. | However, it will take time before it becomes clear how much, he added. |
| Billions of dollars of bad debt forced Lehman Brothers to file for bankruptcy protection on 15 September. | Billions of dollars of bad debt forced Lehman Brothers to file for bankruptcy protection on 15 September. |
| 'Significant pay packages' | 'Significant pay packages' |
| Mr Lomas confirmed that current employees will be paid a bonus roughly similar to the amount received last year. | Mr Lomas confirmed that current employees will be paid a bonus roughly similar to the amount received last year. |
| The prospect is that some creditors will lose money Tony Lomas, administrator | The prospect is that some creditors will lose money Tony Lomas, administrator |
| "In order to keep these people, we need to offer them broadly what they've been paid in the past," said Mr Lomas. | "In order to keep these people, we need to offer them broadly what they've been paid in the past," said Mr Lomas. |
| "So there will be significant pay packages, but that's the price of hiring that sort of resource." | "So there will be significant pay packages, but that's the price of hiring that sort of resource." |
| PricewaterhouseCoopers is the administrator to the European arm of Lehman and the process of unravelling the firm's trades is expected to take many years. | PricewaterhouseCoopers is the administrator to the European arm of Lehman and the process of unravelling the firm's trades is expected to take many years. |
| "The prospect is that some creditors will lose money. How much - we can't determine that for a significant time," said Mr Lomas. | "The prospect is that some creditors will lose money. How much - we can't determine that for a significant time," said Mr Lomas. |
| The process could take as long as seven years and would be "10 times" more complicated that the bankruptcy of US energy firm Enron, Mr Lomas said. | The process could take as long as seven years and would be "10 times" more complicated that the bankruptcy of US energy firm Enron, Mr Lomas said. |
| Around 1,000 creditors or their representatives listened to the administrators explain the long process ahead of them. | Around 1,000 creditors or their representatives listened to the administrators explain the long process ahead of them. |
| PWC said that they had recovered around just $5bn of a potential $550bn of obligations to creditors on the bank's balance sheet. | PWC said that they had recovered around just $5bn of a potential $550bn of obligations to creditors on the bank's balance sheet. |
| Lehman Brothers has more than $1 trillion worth of outstanding trades for PWC to work through. | Lehman Brothers has more than $1 trillion worth of outstanding trades for PWC to work through. |
| Deals | Deals |
| PWC has already negotiated a deal with Nomura, which is to buy Lehman's European and Middle Eastern equities and investment bank operations. | PWC has already negotiated a deal with Nomura, which is to buy Lehman's European and Middle Eastern equities and investment bank operations. |
| It plans to retain an 1,000 staff in London and will pay them their 2007 bonuses. | |
| Nomura is also buying the bank's franchise in the Asia Pacific region. | Nomura is also buying the bank's franchise in the Asia Pacific region. |
| Barclays has bought Lehman's North American investment banking and capital markets divisions. | Barclays has bought Lehman's North American investment banking and capital markets divisions. |
| Lehman is also facing legal actions around the world. | Lehman is also facing legal actions around the world. |
| Deutsche Bank said it has sued the bank to recover $72.5m (£49.2m) it says was accidentally transferred to Lehman after it had filed for bankruptcy. | Deutsche Bank said it has sued the bank to recover $72.5m (£49.2m) it says was accidentally transferred to Lehman after it had filed for bankruptcy. |