Lehman buy delivers big results

By Tim Neary | 18/02/2010 12:00:00 AM | 0 comments

Barclays more than doubled net profit last year, signaling the bank's rushed purchase of Lehman Brothers' North American operations has begun to deliver big results.

Barclays agreed to buy the North American assets of Lehman in just a matter of hours during September 2008.

Barclays president Robert Diamond, the American who spearheaded the deal, said the results showed that the acquisition had been "transformational" for the bank, reported The Wall Street Journal.

Meanwhile, Barclays chief executive John Varley used the results to champion the advantage of large complex banks.

His remarks indirectly hit at US regulators proposals to limit the size of large institutions.

"We see big banks as diversifiers, not risk aggregators," he said.
Australian banks are under the same pressure to comply with planned global reforms by US regulators. 


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