September 21, 2008

HUGE BONUSES PROMISED TO SOME LEHMAN STAFF, OTHERS LEFT WITHOUT PAY

Times UK - Staff at Lehman's New York office who helped to cause the world's biggest corporate bankruptcy are to share in a $2.5 billion bonanza. The bonus, which has been described by London staff as a "scandal" has been pledged by Barclays Capital, the British-based bank that last week acquired Lehman's American operation and took on 10,000 staff. . .

A Chapter 11 bankruptcy document filed by Lehman Brothers Holdings Inc says that Barclays has identified eight individuals out of the New York staff of 10,000 who are vital to make the deal succeed and a further 200 who are identified as "key". It is thought that these eight directors will be locked into two-year contracts worth between $10m and $25m a year. . .

One London-based Lehman employee said: "It's an absolute scandal. I will never work for an American firm again. It looks like they are prepared to cut you off at the knees. Nobody from America has been in touch since we went into administration on Monday."

Another said: "Every other financial institution has been saved, including Lehman Brothers in the US, but it's another story for the employees in Europe.". . .

Price Waterhouse Coopers, the administrator to Lehman's European operation has demanded that the firm repay L4.4 billion that was transferred from the UK to Lehman's US holding company just hours before the firm collapsed. This left London with no money to pay staff.

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