Barclays Capital Completes Acquisition Of Lehman Brothers

Barclays Capital, the investment banking division of Barclays PLC, has completed the integration of the North American businesses of Lehman Brothers acquired in September 2008. As the final step in the integration, it has strengthened the leadership of the expanded

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Barclays Capital, the investment banking division of Barclays PLC, has completed the integration of the North American businesses of Lehman Brothers acquired in September 2008. As the final step in the integration, it has strengthened the leadership of the expanded firm by promoting eight senior Managing Directors to its Executive Committee.

“The completion of the integration is a significant milestone for our clients, shareholders and employees, four months after announcing the acquisition,” says Bob Diamond, president, Barclays PLC. “Our clients now have the benefit of a fully integrated investment bank able to offer the full array of risk management, financing and advisory products. We are now operating as one firm using our business principles to manage risk, manage costs and stay close to our clients. As we said, we targeted breakeven for the acquired businesses in 2008, and in fact they are already contributing to the bottom line.”

“The addition of eight exceptionally talented leaders to the Executive Committee gives us a leadership team to match the scale and reach of our integrated firm. This allows us to continue to provide the highest levels of service to our clients.”

The enlarged Executive Committee now includes:

* Bob Diamond* Jerry del Missier

* Rich Ricci

* Iain Abrahams* Eric Bommensath* Patrick Clackson* Gerald Donini* Roger Jenkins

* Hugh ‘Skip’ E. McGee III* Robert Morrice

* Ivan Ritossa* Guglielmo Sartori di Borgoricco* Benoit de Vitry* Archie Cox (ex-officio)* Hans-Joerg Rudloff (ex-officio)

The integration of Lehman Brothers’ North American businesses into Barclays Capital has established leading Barclays Capital businesses in Equities, Research, and M&A and further strengthened its existing advisory, risk management and financing activities. Barclays Capital has already started to build out its Equities and M&A franchises in Europe and Asia to complement its leading position in these businesses in the US.

Barclays Capital’s US Treasury Securities business increased its market share as a result of its integration with Lehman Brothers by 38% from 9.2% for the first three quarters of the calendar year 2008 to 12.7% in the fourth quarter, while its Federal Agency Securities business, excluding mortgage backed securities, increased from 9.9% for the first three quarters of the calendar year to 12.7%, a 28% increase, according to Federal Reserve data. In the United States, Barclays Capital ranked top in four categories in Treasury and Agency trading, and ranked first or second in an additional three categories.

Within two weeks of the acquisition, Barclays Capital had full functionality for US clients across cash, electronic, portfolio and listed options. It has now successfully integrated its equity derivatives and convertibles teams. Since the acquisition four months ago, approximately 85% of Lehman Brothers’ former top Equities clients have been actively trading with Barclays Capital. In January 2009, Barclays Capital initiated trading of US products for Japanese clients. In 2008, the US Equities franchise was top ranked across sales, trading and research.

The integration has involved hundreds of initiatives, including aligning market risk and compliance systems, selecting suppliers, combining email systems, branding buildings, customer statements and trade confirmations, rolling out unified credit risk processes and policies, creating an integrated HR system with consistent titles and grades. Seventy six new product lines are up and running as a result.

D.C.

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