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Lehman Brothers world headquarters is shown in New York on Sept. 15, 2008, the day the 158-year-old investment bank, choked by the credit crisis and falling real estate values, filed for bankruptcy. Fifteen years ago, the world witnessed the largest commercial collapse in history.
The "Federal Reserve-backed advances" as provided by JPMorgan Chase were for $87 billion on September 15 and $51 billion on September 16. The filing remains the largest bankruptcy filing in U.S. history, with Lehman holding over $600 billion in assets.
Barclays acquired the investment banking business of Lehman Brothers in September 2008.
Barclays had been circling around Lehman for months ahead of its collapse ? an internal team had been working on what was known as Project Long Island since March. Lehman, with its strength in the US, especially in equities and M&A, seemed like a perfect fit for the European, bond-focused Barclays.
On September 16, 2008, Barclays PLC announced that they would acquire a "stripped clean" portion of Lehman for $1.75 billion, including most of Lehman's North America operations.
The short answer was that Lehman was illiquid and lacked sufficient collateral to borrow enough from the Fed or to renew the repurchase agreement contracts (repos) to avert collapse. Surprisingly, just before filing for bankruptcy, Lehman was given investment-grade ratings by the big three independent rating agencies.
The short answer was that Lehman was illiquid and lacked sufficient collateral to borrow enough from the Fed or to renew the repurchase agreement contracts (repos) to avert collapse. Surprisingly, just before filing for bankruptcy, Lehman was given investment-grade ratings by the big three independent rating agencies.
Following the bankruptcy filing, Barclays and Nomura Holdings eventually acquired the bulk of Lehman's investment banking and trading operations. Barclays additionally picked up Lehman's New York headquarters building.