What of Lehman Europe, Asia?
By BankersBall on Sep 21, 2008 in Cube Life, Expats, Layoffs, London
Europeans may not need to be so glum. A suitor is near and pay checks will be out next week.
While U.S.-based Lehman Bros bankers are basking in the relative security of “up to 10,000 jobs may be saved”, Lehman’s international units are feeling left a little high and dry, or in some cases, feeling very, very angry.
One *small* issue is the more than $8BN that Lehman transferred (although it’s not clear how much was transferred, and when) through London from its international units. UK Prime Minister Gordon Brown is now involved with getting that money back. “We are asking and working with the American government to get that money back to pay salaries, not of highflying financiers, but of cleaners and people who are computer operators who would otherwise be denied their money” the WSJ reported Brown as saying.
The Times (UK) reports that one thing has been salvaged — London staff are expected to be paid this week.
Meanwhile, news late Sunday was that Barclays and Nomura were in talks for Lehman’s European businesses, namely its corporate finance and equity trading arms. The fixed income unit would likely not be included, according to the FT. The FT also reported that Barclays told Lehman’s execs that European staff would not “be disadvantaged relative to US colleagues.”
A partner at Lehman’s European administrator, PwC, told the FT that “The equities team and investment banking team represent several thousand jobs. We are hoping to create certainty for these staff within the next day …We are hoping to go with one party. In terms of giving the best future for the staff, and getting the best for creditors, it is easiest with one party. But I’m not saying that’s where we will end up.”
As for Lehman’s Asian operations, Barclays, Nomura and Standard Chartered were reportedly in the running, according to the FT.
Regardless of the outcome, Lehman’s European brethern were none too happy last week.
Christian Meissner, who had just joined Lehman the week before to head up its EMEA business, was “bristling with anger” as he addressed Lehman’s employees in Canary Wharf last Monday morning, reported the Times (UK):
Meissner and the rest of the European executives were furious. They bombarded New York with angry phone calls all night, begging for money to make one last pay-roll, but to no avail. “We were basically told ‘Europe, you’re on your own’,” said one senior Lehman executive. Another said: “There is a big feeling in London that the New Yorkers have looked after themselves. What’s worse, the problems in New York were what brought us down.”
According to the TImes (UK), one anonymous European managing director wrote Lehman president Herbert (”Bart”) McDade in an email:
“I am waiting on an e-mail from you, like all colleagues in Europe, acknowledging the hard work, dedication that all of us showed for Lehman and you … Come on guys. Show some respect for the rest of the world who carried your flag and believed in the ‘one firm’ culture . . . there is a thing called ‘appreciation and class’ even after the war is lost.”


On Sep 23, 2008, Charlie Boss said:
I wonder if investment banking jobs will ever be as attractive as they were before the credit crunch. My feeling is that the events of the last two weeks have shaken the confidence of prospective investment bankers across the world, and it will be a while before they’re willing to gamble their careers at the sharp end of the financial services sector.
If you’d like to read more about recruitment in the financial services, take a look at the FreshMinds Talent Blog here.
Thanks,
Charlie
On Sep 24, 2008, MrSmith said:
Who is Cede & Company?
http://www.youtube.com/watch?v=ugMNLVThAcU