Barclays share price: Bank wins ruling in Lehman case

on May 5, 2015
Updated: Oct 21, 2019

Barclays (LON:BARC) is entitled to roughly $4 billion of disputed assets as part of its purchase of Lehman Brothers after the US Supreme Court rejected an appeal from a challenger yesterday.

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The top US court denied an appeal from James Giddens, the trustee managing the liquidation of the investment bank, which failed in 2008 at the height of the financial crisis. The judges left intact a federal appeals court ruling, which said Barclays acquired the assets as part of a hastily drafted purchase agreement.
A spokesperson for Giddens said that the trustee was “disappointed,” but remained “focused on continued progress in winding-down and closing out the LBI estate”. Barclays has not commented on the development. Separately, Barclays – which in 2012 became the first lender to settle an investigation into manipulation of the London interbank offered rate, a global benchmark interest rate known as Libor – has faced fresh scrutiny over its role in the scandal, after a storage company launched a multimillion-pound legal claim against the British bank. The Independent today reported that Rhino Enterprises, which has spent almost two years in administration, blamed Barclays for its financial troubles.
A writ filed at the High Court in London and seen by The Independent says: “Barclays was knowingly participating with other banks in making false Libor submissions in all key currencies, including sterling. The purpose and/or motive varied from time to time but the effect of the false submissions was to render the rates unreliable, if not meaningless, and to undermine the integrity of Libor as a benchmark.”
Barclays’ share price has been volatile today. After steep rises in the morning, the stock eased, standing 0.12 percent lower at 253.90p as of 14:27 BST.
As of 15:05 BST, Tuesday, 05 May, Barclays share price is 254.95p.


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