The National Bank Building also known as the Corner House is situated on the corner of Market and Simmonds Streets in Johannesburg. The address 38-40 Simmonds Street corresponds to Stand 205 F.
97-474: It was designed by renowned architects Leck and Emley in 1903, and construction was completed in 1904. Leck and Emley also designed the neighbouring Corner House building in 1902, which was finished in 1904 on the corner of Simmonds and Commissioner Streets. The facade of the new National Bank Building blended well with that of the Corner House, and it is believed that J.B.Taylor, chairman of Corner House as well as
194-648: A Quaker , and Thomas Gould, started trading as goldsmith bankers in Lombard Street, London . The name "Barclays" became associated with the business in 1736, when Freame's son-in-law James Barclay became a partner. In 1728, the bank moved to 54 Lombard Street, identified by the "Sign of the Black Spread Eagle ", which in subsequent years would become a core part of the bank's visual identity. The Barclay family were connected with slavery, both as proponents and opponents. David and Alexander Barclay were engaged in
291-476: A return on equity among the highest in the investment-banking industry. By the early 1980s, hostilities between the firm's investment bankers and traders prompted Peterson to promote Lewis Glucksman , the firm's President, COO and former trader, to be his co-CEO in May 1983. Glucksman introduced a number of changes that had the effect of increasing tensions, which when coupled with Glucksman's management style and
388-468: A "stripped clean" portion of Lehman for $ 1.75 billion, including most of Lehman's North America operations. On September 20, 2008, a revised version of the deal, a $ 1.35 billion (£700 million) plan for Barclays to acquire the core business of Lehman (mainly its $ 960-million headquarters, a 38-story office building in Midtown Manhattan , with responsibility for 9,000 former employees),
485-458: A $ 27 million reduction in goodwill . Lehman said that poor market conditions in the mortgage space "necessitated a substantial reduction in its resources and capacity in the subprime space." In September 2007, Joe Gregory appointed Erin Callan as CFO. On March 16, 2008, after rival Bear Stearns was taken over by JPMorgan Chase in a fire sale , market analysts suggested that Lehman would be
582-516: A 32-story, 1,050,000-square-foot (98,000 m ) office building for a reported sum of $ 700 million. The building, located at 745 Seventh Avenue , had recently been completed, and not yet occupied, by rival Morgan Stanley . Lehman began moving into the new facility in January and finished in March 2002. The firm did not return to Three World Financial Center as its structural integrity had not been given
679-508: A 4:1 share split. In 2003, Barclays bought the American credit card company Juniper Bank from CIBC , re-branding it as "Barclays Bank Delaware". The same year saw the acquisition of Banco Zaragozano, the 11th-largest Spanish bank. Barclays took over sponsorship of the Premier League from Barclaycard in 2004. In May 2005, Barclays moved its group headquarters from Lombard Street in
776-783: A Barclay, was admitted, and the business then became "Barclay, Bevan, Bening and Tritton". In 1896, twelve houses in London and the English provinces, notably Goslings and Sharpe , Backhouse's Bank of Darlington and Gurney's Bank of Norwich (the latter two of which also had their roots in Quaker families), united to form Barclays and Co., a joint-stock bank, which at its formation held around one quarter of deposits in English private banks. Between 1905 and 1916, Barclays extended its branch network by making acquisitions of small English banks. Further expansion followed in 1918 when Barclays amalgamated with
873-546: A clean bill of health, and the company could not have waited for repairs to Three World Financial Center to conclude. After the attacks, Lehman's management placed increased emphasis on business continuity planning . Aside from its headquarters in Three World Financial Center, Lehman maintained operations-and-backoffice facilities in Jersey City , space that the firm considered leaving prior to 9/11. The space
970-649: A company in which there was "no accountability for failure". An article by journalist Matt Taibbi in Rolling Stone contended that naked short selling contributed to the demise of both Lehman and Bear Stearns . A study by finance researchers at the University of Oklahoma Price College of Business studied trading in financial stocks, including Lehman Brothers and Bear Stearns, and found "no evidence that stock price declines were caused by naked short selling". On Saturday, September 13, 2008, Timothy F. Geithner , then
1067-514: A director of the National Bank, proposed the plan of combining the two. Fifty years later, in 1953, the bank (now Barclays) duplicated Taylor's thinking, and Gordon Leith was commissioned to design the third part of the building – the Market Street extension – in keeping with the two existing structures to form a cohesive unit. It was refurbished by the current owners, Barclays Bank . Before
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#17328554183421164-474: A downturn in the markets, resulted in a power struggle that ousted Peterson and left Glucksman as the sole CEO. Upset bankers, who had soured over the power struggle, left the company. Stephen A. Schwarzman , chairman of the firm's M&A committee, recalled in a February 2003 interview with Private Equity International that "Lehman Brothers had an extremely competitive internal environment, which ultimately became dysfunctional." The company suffered under
1261-419: A force in the subprime market. By 2003 Lehman made $ 18.2 billion in loans and ranked third in lending. By 2004, this number topped $ 40 billion. By 2006, Aurora and BNC were lending almost $ 50 billion per month. By 2008, Lehman had assets of $ 680 billion supported by only $ 22.5 billion of firm capital. From an equity position, its risky commercial real estate holdings were thirty times greater than capital. In such
1358-493: A further $ 6 billion in capital. As a result, there was major management shakeup, in which Hugh "Skip" McGee III (head of investment banking) held a meeting with senior staff to strip CEO Richard Fuld and his lieutenants of their authority. Consequently, Joe Gregory agreed to resign as president and COO, and afterward he told Erin Callan that she had to resign as CFO. Callan was appointed CFO of Lehman in 2008 but served only for six months, before departing after her mentor Joe Gregory
1455-639: A group holding company, renamed Barclays Group Plc, and UK retail banking was integrated under the former BBI, and renamed Barclays Bank PLC from Barclays Bank Limited . In response to the Big Bang on the London Stock Exchange , in 1986 Barclays bought UK stockbroker de Zoete & Bevan and jobbing firm Wedd Durlacher (formerly Wedd Jefferson). They were merged with Barclays Merchant Bank to form Barclays de Zoete Wedd (BZW). Also that year Barclays sold its South African business operating under
1552-417: A highly leveraged structure, a 3 to 5 percent decline in real estate values would wipe out all capital. A March 2010 report by the court appointed examiner indicated that Lehman executives regularly used cosmetic accounting gimmicks at the end of each quarter to make its finances appear less shaky than they really were. This practice was a type of repurchase agreement that temporarily removed securities from
1649-495: A leadership position for the firm, leaving no member of the Lehman family actively involved with the partnership. At the same time, Lehman was facing strong headwinds amidst the difficult economic environment of the early 1970s. By 1972, the firm was facing hard times and in 1973, Pete Peterson , chairman and chief executive officer of the Bell & Howell Corporation, was brought in to save
1746-493: A rejuvenation process in the 'Financial District' of Johannesburg. They secured the filming of Trump's "The Apprentice" and created a luxury penthouse apartment of over 8000 sq.ft on the top floor of the National Bank House, thereby creating renewed interest in the old city. Today the National Bank House is once again fully tenanted with high-end colleges, law firms, accountants and other professionals. The old Banking Mall on
1843-655: A revised version of that agreement was approved by U.S. Bankruptcy Court Judge James M. Peck. The next week, Nomura Holdings announced that it would acquire Lehman Brothers' franchise in the Asia–Pacific region, including Japan , Hong Kong and Australia , as well as Lehman Brothers' investment banking and equities businesses in Europe and the Middle East . The deal became effective on October 13, 2008. In 1844, 23-year-old Heyum Lehmann, who changed his name to Henry Lehman ,
1940-550: A similar emergency." Luc Despins, then a partner at Milbank, Tweed, Hadley & McCloy , the creditors committee counsel, said: "The reason we're not objecting is really based on the lack of a viable alternative. We did not support the transaction because there had not been enough time to properly review it." In the amended agreement, Barclays would absorb $ 47.4 billion in securities and assume $ 45.5 billion in trading liabilities. Lehman's attorney Harvey R. Miller of Weil, Gotshal & Manges , said "the purchase price for
2037-545: A stake to Sumitomo Mitsui Banking Corporation . Only 19% of shareholders took up their rights leaving investors China Development Bank and Qatar Investment Authority with increased holdings in the bank. Reuters reported in October 2008 that the British government would inject £40 billion (US$ 69 billion) into three banks including Barclays, which might seek over £7 billion. Barclays later confirmed that it rejected
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#17328554183422134-450: A way as to respect the original building and to create a harmonious facade. In 2004, the National Bank House was purchased from First Rand (or First National Bank) by Urban Ocean Property Developers (PTY)LTD. This privately owned company took a long term view on the history of Johannesburg inner city as the financial capital of the African continent (or the "City of Gold"), and undertook to start
2231-516: Is a British multinational universal bank , headquartered in London , England. Barclays operates as two divisions, Barclays UK and Barclays International, supported by a service company, Barclays Execution Services. Barclays traces its origins to the goldsmith banking business established in the City of London in 1690. James Barclay became a partner in the business in 1736. In 1896, twelve banks in London and
2328-480: Is not shirking accountability for recent performance." Lehman Brothers Investment Management Director George Herbert Walker IV dismissed the proposal, going so far as to actually apologize to other members of the Lehman Brothers executive committee for the idea having been suggested. He wrote, "Sorry team. I am not sure what's in the water at Neuberger Berman. I'm embarrassed and I apologize." During hearings on
2425-724: The Bank of Scotland in exchange for a 25% stake, a transaction that became effective from 1971. Barclays DCO changed its name to Barclays Bank International in 1971. From 1972 until 1980, a minority stake in Banca Barclays Castellini SpA, Milan was owned by the Castellini family. In 1980, Barclays Bank International acquired the remaining stake in Barclays Castellini from the Castellini family. In August 1975, following
2522-757: The Barclays National Bank name after protests against Barclays' involvement in South Africa and its apartheid government. Barclays introduced the Connect card in June 1987, the first debit card in the United Kingdom. In 1988, Barclays sold Barclays Bank of California, which at that time was the 17th-largest bank in California measured by assets, to Wells Fargo for US$ 125 million in cash. Edgar Pearce ,
2619-786: The City of London to One Churchill Place in Canary Wharf . Also in 2005 Barclays sealed a £2.6bn takeover of Absa Group Limited , South Africa's largest retail bank, acquiring a 54% stake on 27 July 2005. Then in 2006, Barclays purchased the HomEq Servicing Corporation for US$ 469 million in cash from Wachovia Corp. That year also saw the acquisition of the financial website CompareTheLoan and Barclays announcing plans to rebrand Woolwich branches as Barclays, migrating Woolwich customers onto Barclays accounts and migrating back-office processes onto Barclays systems—the Woolwich brand
2716-672: The London, Provincial and South Western Bank , and in 1919, when the British Linen Bank was acquired by Barclays, although the British Linen Bank retained a separate board of directors and continued to issue its own banknotes (see Banknotes of the pound sterling ). In 1925, the Colonial Bank , National Bank of South Africa and the Anglo-Egyptian Bank were amalgamated and Barclays operated its overseas operations under
2813-569: The New York Stock Exchange in 1887. In 1899, it underwrote its first public offering, the preferred and common stock of the International Steam Pump Company . Despite the offering of International Steam, the firm's real shift from being a commodities house to a house of issue did not begin until 1906. In that year, under Emanuel's son Philip Lehman , the firm partnered with Goldman, Sachs & Co. , to bring
2910-575: The S&;P 500 down 3.4% on September 9. The Dow Jones lost 300 points the same day on investors' concerns about the security of the bank. The U.S. government did not announce any plans to assist with any possible financial crisis that emerged at Lehman. The next day, Lehman announced a loss of $ 3.9 billion and its intent to sell off a majority stake in its investment-management business, which included Neuberger Berman . The stock slid seven percent that day. Lehman, after earlier rejecting questions on
3007-493: The U.S. Census of 1860 . Capitalizing on cotton's high market value, the three brothers began to routinely accept raw cotton from slave plantations as payment for merchandise , eventually beginning a second business trading in cotton. Within a few years this business grew to become the most significant part of their operation. Following Henry's death from yellow fever in 1855, the remaining brothers continued to focus on their commodities-trading/brokerage operations. By 1858,
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3104-404: The secondary banking crash , Barclays acquired Mercantile Credit Company. Barclays Bank International expanded its business in 1980 to include commercial credit and took over American Credit Corporation, renaming it Barclays American Corporation. During 1985 Barclays Bank and Barclays Bank International merged, and as part of the corporate reorganisation the former Barclays Bank plc became
3201-504: The "Mardi Gra Bomber", began a terror campaign against the bank and the supermarket chain Sainsbury's in 1994. Barclays bought Wells Fargo Nikko Investment Advisors (WFNIA) in 1996 and merged it with BZW Investment Management to form Barclays Global Investors . Bob Diamond took charge of the investment banking businesses that year. Two years later, in 1998, the BZW business was broken up and
3298-691: The $ 1 billion purchase of E.F. Hutton to form Shearson Lehman Hutton . In 1989, Shearson backed F. Ross Johnson 's management team in its attempted management buyout of RJR Nabisco , but were ultimately outbid by private equity firm Kohlberg Kravis Roberts , who was backed by Drexel Burnham Lambert . In 1993, under newly appointed CEO Harvey Golub , American Express began to divest itself of its banking and brokerage operations. It sold its retail brokerage and asset management operations to Primerica and in 1994 it spun off Lehman Brothers Kuhn Loeb in an initial public offering , as Lehman Brothers Holdings, Inc. After being spun off, Dick Fuld became CEO of
3395-583: The 1930s, Lehman underwrote the initial public offering of the first television manufacturer , DuMont Laboratories , and helped fund the Radio Corporation of America (RCA). It also helped finance the rapidly growing oil industry, including the companies Halliburton and Kerr-McGee . In the 1950s, Lehman underwrote the IPO of Digital Equipment Corporation . Later, it arranged the acquisition of Digital by Compaq . Robert Lehman died in 1969 after 44 years in
3492-522: The 1990s, Barclays helped to fund President Robert Mugabe 's government in Zimbabwe . The most controversial of a set of loans provided by Barclays was the £30 million it gave to help sustain land reforms that saw Mugabe seize white-owned farmland and drive more than 100,000 black workers from their homes. Opponents have called the bank's involvement a "disgrace" and an "insult" to the millions who have suffered human rights abuses. A Barclays spokesman said
3589-629: The 2nd and 3rd positions, respectively. Barclays operates in over 40 countries, employs over 80,000 people and is the fifth largest bank in Europe by total assets. Barclays UK comprises the British retail banking operations, consumer credit card business, wealth management business, and corporate banking for small, medium and large-sized businesses in the UK. Barclays International consists of Barclays Corporate and Investment Bank (formerly known as Barclays Capital ) and
3686-830: The British government (in particular, the Chancellor of the Exchequer Alistair Darling and the CEO of the Financial Services Authority Hector Sants ) refused to allow the transaction at the last minute, quoting stockholder regulations in the UK, despite a deal having apparently been completed. The next day, Sunday, September 14, the International Swaps and Derivatives Association (ISDA) offered an exceptional trading session to allow market participants to offset positions in various derivatives on
3783-567: The British-based bank during World War II. Barclays, along with seven French banks, was named in a lawsuit filed in New York on behalf of Jews who were unable to reclaim money they deposited during the Nazi era. In an unusual move as part of the trend at the time for free ISPs , Barclays launched an internet service in 1999 called Barclays.net. This entity was acquired by British Telecom in 2001. In
3880-701: The Consumer, Cards & Payments business. The investment banking business provides advisory, financing and risk management services to large companies, institutions and government clients. It is a primary dealer in Gilts , U.S. Treasury securities and various European Government bonds . The bank's name has never included an apostrophe (Barclay's) in its spelling. It was first registered in 1896 as "Barclay and Company, Limited", changed to "Barclays Bank Limited" in 1917 and to "Barclays Bank PLC" in 1982. Barclays traces its origins back to 17 November 1690, when John Freame ,
3977-697: The EU rules do not apply to its 67%-owned Zimbabwean subsidiary because it was incorporated outside the EU. In August 2000, Barclays took over the recently de-mutualised Woolwich PLC, formerly the Woolwich Building Society, in a £5.4 billion acquisition. Woolwich thus joined the Barclays group of companies, and the Woolwich name was retained after the acquisition. The company's head office remained in Bexleyheath , south-east London , four miles (6 km) from
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4074-477: The English provinces, including Goslings Bank , Backhouse's Bank and Gurney, Peckover and Company , united as a joint-stock bank under the name Barclays and Co. Over the following decades, Barclays expanded to become a nationwide bank. In 1967, Barclays deployed the world's first cash dispenser . Barclays has made numerous corporate acquisitions, including of London, Provincial and South Western Bank in 1918, British Linen Bank in 1919, Mercantile Credit in 1975,
4171-537: The Equity and Corporate Finance Divisions were sold to Credit Suisse First Boston : Barclays retained the debt-focused Fixed Income business and Structured Capital Markets which formed the foundation of the rebranded Barclays Capital ( BarCap ). Barclays Capital had offices in over 29 countries and employed over 20,000 people, with over 7,000 people working in its IT division. In 1998, Barclays Bank agreed to pay $ 3.6m to Jews whose assets were seized from French branches of
4268-470: The General Cigar Co. to market, followed closely by Sears, Roebuck and Company . Among these were F.W. Woolworth Company , May Department Stores Company , Gimbel Brothers, Inc. , R.H. Macy & Company , The Studebaker Corporation , the B.F. Goodrich Co. , and Endicott Johnson Corporation . Following Philip Lehman's retirement in 1925, his son Robert "Bobbie" Lehman took over as head of
4365-710: The Government's offer and would instead raise £6.5 billion of new capital (£2 billion by cancellation of dividend and £4.5 billion from private investors). Barclays launched a further round of capital raising, approved by special resolution on 24 November 2008, as part of its overall plan to achieve higher capital targets set by the UK's Financial Services Authority to ensure it would remain independent. Barclays raised £7 billion from investors from Abu Dhabi and Qatar. Existing Barclays shareholders complained they were not offered full pre-emption rights in this round of capital raising, even threatening to revolt at
4462-720: The National Bank Building was built, the site on Simmonds Street had been owned by several different organisations, including the Beaconsfield Hotel in 1889, Baldwin Chambers in 1890, National Bank of the Z.A.R. in 1892, Chamber of Mines in 1894, and in 1899 the New Court Building. The building was altered by architects G. Leith & Partners in 1953-56, to gain two further storeys and additions were created on Stands 750 and 751. The additional floors were designed in such
4559-498: The New York Stock Exchange delisted Lehman Brothers. On March 16, 2011 some three years after filing for bankruptcy and following a filing in a Manhattan U.S. bankruptcy court , Lehman Brothers Holdings Inc announced it would seek creditor approval of its reorganization plan by October 14 followed by a confirmation hearing to follow on November 17. On September 16, 2008, Barclays PLC announced that they would acquire
4656-404: The UK government, which was offered to boost its capital ratio. Barclays believed that "maintaining its independence from government was in the best interests of its shareholders". In July 2008, Barclays attempted to raise £4.5 billion through a non-traditional rights issue to shore up its weakened Tier 1 capital ratio , which involved a rights offer to existing shareholders and the sale of
4753-617: The US. However, a Barclays spokesman denied the rumours. In February 2008, Barclays bought the credit card brand Goldfish for US$ 70 million gaining 1.7 million customers, and US$ 3.9 billion in receivables. Barclays also bought a controlling stake in the Russian retail bank Expobank for US$ 745 million. Later in the year Barclays commenced its Pakistan operations with initial funding of US$ 100 million. Barclays sought to raise capital privately, avoiding direct equity investment from
4850-576: The United States (behind Goldman Sachs , Morgan Stanley , and Merrill Lynch ), with about 25,000 employees worldwide. It was doing business in investment banking, equity , fixed-income and derivatives sales and trading (especially U.S. Treasury securities ), research, investment management , private equity , and private banking . Lehman was operational for 158 years from its founding in 1850 until 2008. On September 15, 2008, Lehman Brothers filed for Chapter 11 bankruptcy protection following
4947-759: The Woolwich in 2000 and the North American operations of Lehman Brothers in 2008. Barclays has a primary listing on the London Stock Exchange and is a constituent of the FTSE 100 Index . It has a secondary listing on the New York Stock Exchange . It is considered a systemically important bank by the Financial Stability Board . According to a 2011 paper, Barclays was the most powerful transnational corporation in terms of ownership and thus corporate control over global financial stability and market competition , with Axa and State Street Corporation taking
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#17328554183425044-524: The bank has had customers in Zimbabwe for decades and abandoning them now would make matters worse, "We are committed to continuing to provide a service to those customers in what is clearly a difficult operating environment". Barclays also provided two of Mugabe's associates with bank accounts, ignoring European Union sanctions on Zimbabwe. The men are Elliot Manyika and minister of public service Nicholas Goche. Barclays has defended its position by insisting that
5141-546: The bank volunteered the names of Jewish employees, as well as ceding an estimated one hundred Jewish bank accounts to the German occupiers. The Paris branch used its funds to increase the operational power of a large quarry that helped produce steel for the Germans. There was no evidence of contact between the head office in London and the branch in Paris during the occupation. Marcel Cheradame
5238-506: The bank's orderly liquidation and the Federal Reserve, in turn, agreed to a swap of lower-quality assets in exchange for loans and other assistance from the government. The morning witnessed scenes of Lehman employees removing files, items with the company logo, and other belongings from the world headquarters at 745 Seventh Avenue. The spectacle continued throughout the day and into the following day. Brian Marsal, co-chief executive of
5335-559: The bankruptcy filing by Lehman Brothers and bailout of AIG before the House Committee on Oversight and Government Reform, former Lehman Brothers CEO Richard Fuld said a host of factors including a crisis of confidence and naked short-selling attacks followed by false rumors contributed to both the collapse of Bear Stearns and Lehman Brothers. House committee Chairman Henry Waxman said the committee received thousands of pages of internal documents from Lehman and these documents portray
5432-510: The center of cotton trading had shifted from the South to New York City, where factors and commission houses were based. Lehman opened its first branch office at 119 Liberty Street , and 32-year-old Emanuel relocated there to run the office. In 1862, facing difficulties as a result of the Civil War , the firm teamed up with a cotton merchant named John Durr to form Lehman, Durr & Co. Following
5529-491: The closure of their operation in Peterborough and its re-siting to Glasgow, laying off nearly 900 members of staff. On 30 August 2007, Barclays was forced to borrow £1.6 billion (US$ 3.2 billion) from the Bank of England sterling standby facility. This is made available as a last-resort when banks are unable to settle their debts to other banks at the end of daily trading. Despite rumours about liquidity at Barclays,
5626-422: The company's balance sheet . However, unlike typical repurchase agreements, these deals were described by Lehman as the outright sale of securities and created "a materially misleading picture of the firm's financial condition in late 2007 and 2008". In August 2007, the firm closed its subprime lender , BNC Mortgage, eliminating 1,200 positions in 23 locations, and took an after-tax charge of $ 25 million and
5723-483: The company. Fuld steered Lehman through the 1997 Asian Financial Crisis , and when the Long Term Capital Management hedge fund collapsed in 1998. In 2001, the firm acquired the private-client services, or "PCS", business of Cowen & Co. and later, in 2003, aggressively re-entered the asset-management business, which it had exited in 1989. Beginning with $ 2 billion in assets under management ,
5820-587: The condition of a Lehman bankruptcy later that day. Although the bankruptcy filing missed the deadline, many dealers honored the trades they made in the special session. Shortly before 1 am Monday morning (UTC−5), Lehman Brothers Holdings announced it would file for Chapter 11 bankruptcy protection citing bank debt of $ 613 billion, $ 155 billion in bond debt, and assets worth $ 639 billion. It further announced that its subsidiaries would continue to operate as normal. A group of Wall Street firms agreed to provide capital and financial assistance for
5917-487: The consortium led by Royal Bank of Scotland Group free to proceed with its counter-bid for ABN AMRO. To help finance its bid for ABN AMRO, Barclays sold a 3.1% stake to China Development Bank and a 3% stake to Temasek Holdings , the investment arm of the Singaporean government. Also in 2007, Barclays agreed to purchase Equifirst Corporation from Regions Financial Corporation for US$ 225 million. That year also saw Barclays Personal Investment Management announcing
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#17328554183426014-403: The continuing subprime mortgage crisis . Lehman's loss was a result of having held on to large positions in subprime and other lower-rated mortgage tranches when securitizing the underlying mortgages; it is unclear whether Lehman was simply unable to sell the lower-rated bonds or voluntarily kept them. In any event, huge losses accrued in lower-rated mortgage-backed securities throughout 2008. In
6111-426: The disintegration, and Glucksman was pressured into selling the firm. Shearson/American Express , an American Express -owned securities company focused on brokerage rather than investment banking, acquired Lehman in 1984, for $ 360 million. On May 11, the combined firms became Shearson Lehman/American Express. From 1983 to 1990, Peter A. Cohen was CEO and chairman of Shearson Lehman Brothers, where he led
6208-437: The ensuing months, the firm spread its operations across New York City in over 40 temporary locations. The investment-banking division converted the first-floor lounges, restaurants, and all 665 guest rooms of the Sheraton Manhattan Hotel into office space. The bank also experimented with flextime (to share office space) and remote work via virtual private networking after the attacks. In October 2001, Lehman purchased
6305-409: The exodus of most of its clients, drastic declines in its stock price, and the devaluation of assets by credit rating agencies . The collapse was largely due to Lehman's involvement in the subprime mortgage crisis and its exposure to less liquid assets. Lehman's bankruptcy filing was the largest in US history, beating the previous record holder Enron , and is thought to have played a major role in
6402-503: The extraordinary meeting. Sheikh Mansour and Qatar Holding agreed to open up £500 million of their new holdings of reserve capital instruments for clawback . Existing investors now took this up. Bob Diamond led the effort to purchase the North American business of Lehman Brothers after its bankruptcy in September 2008, securing Barclays a presence in U.S. Equities and Investment Banking. On 16 September 2008, Barclays announced its agreement to purchase, subject to regulatory approval,
6499-641: The firm acquired the Crossroads Group , the fixed-income division of Lincoln Capital Management and Neuberger Berman . These businesses, together with the PCS business and Lehman's private-equity business, comprised the Investment Management Division, which generated approximately $ 3.1 billion in net revenue. During the subprime mortgage crisis , Fuld kept his job while CEOs of rivals like Bear Stearns , Merrill Lynch , and Citigroup were forced to resign. In addition, Lehman's board of directors, which included retired CEOs like Vodafone 's Christopher Gent and IBM 's John Akers were reluctant to challenge Fuld as
6596-608: The firm's share price spiraled lower. In May 2008, prior to going bankrupt, the firm had $ 639 billion in assets. On September 11, 2001, Lehman occupied three floors (38–40) of 1 World Trade Center , where one of its employees was killed in the terrorist attacks of that day. Its global headquarters in Three World Financial Center were severely damaged and rendered unusable by falling debris, displacing over 6,500 employees. Trading operations moved to Jersey City , New Jersey . When stock markets reopened on September 17, 2001, Lehman's sales and trading capabilities were restored. In
6693-423: The firm. Under Peterson's leadership as chairman and CEO, the firm acquired Abraham & Co. in 1975, and two years later merged with Kuhn, Loeb & Co. , to form Lehman Brothers, Kuhn, Loeb Inc. , the country's fourth-largest investment bank, behind Salomon Brothers , Goldman Sachs and First Boston . Peterson led the firm from significant operating losses to five consecutive years of record profits with
6790-406: The firm. During Bobbie's tenure, the company weathered the capital crisis of the Great Depression by focusing on venture capital while the equities market recovered. In 1924, John M. Hancock became the first non-family member to join the firm, followed by Monroe C. Gutman and Paul Mazur, who became partners in 1927. By 1928, the firm had moved to its One William Street location. In
6887-550: The firms had improperly associated analyst compensation with the firms' investment-banking revenues, and promised favorable, market-moving research coverage, in exchange for underwriting opportunities. The settlement, known as the "global settlement", provided for total financial penalties of $ 1.4 billion, including $ 80 million against Lehman, and structural reforms including a complete separation of investment banking departments from research departments, no analyst compensation, directly or indirectly, from investment-banking revenues, and
6984-419: The ground floor of the building is a popular venue for high-end functions from nearby banks, government and product launches. The building is in late Victorian Neo-Classical style with an attractive copper dome on the corner. A glass dome spans over the banking hall, creating a bright and airy interior below. The rest of the roof scape is formed from a flat concrete slab. In the same vein as the building design,
7081-676: The interiors are also carefully proportioned and include fittings executed with a high level of craftsmanship, such as panelling and parquet flooring. A mahogany counter with bronze metal screens was fitted by J H Ross and Company (Pty) Limited. The National Bank Building was declared a national monument by the PHRAG and is historically and culturally significant for the following reasons: 26°12′18.3″S 28°2′23.5″E / 26.205083°S 28.039861°E / -26.205083; 28.039861 Barclays Bank Barclays plc ( / ˈ b ɑːr k l i z / , occasionally /- l eɪ z / )
7178-434: The investment-banking and trading divisions of Lehman Brothers (including its New York skyscraper) which was a United States financial conglomerate that had filed for bankruptcy. Lehman Brothers Lehman Brothers Inc. ( / ˈ l iː m ən / LEE -mən ) was an American global financial services firm founded in 1850. Before filing for bankruptcy in 2008, Lehman was the fourth-largest investment bank in
7275-426: The loan was necessary due to a technical problem with their computerised settlement network. A Barclays spokesman was quoted as saying "There are no liquidity issues in the U.K markets. Barclays itself is flush with liquidity." On 9 November 2007, Barclays shares dropped 9% and were even temporarily suspended for a short period of time, due to rumours of a £4.8 billion (US$ 10 billion) exposure to bad debts in
7372-489: The name Barclays Bank (Dominion, Colonial and Overseas)—Barclays DCO. In 1938, Barclays acquired the first Indian exchange bank, the Central Exchange Bank of India, which had opened in London in 1936 with the sponsorship of Central Bank of India . In 1941, during the German occupation of France , a branch of Barclays in Paris, headed by Marcel Cheradame, worked directly with the invading force. Senior officials at
7469-399: The next major investment bank to fall. Callan fielded Lehman's first quarter conference call, where the firm posted a profit of $ 48.9 million, compared to Citigroup 's $ 5.1 billion and Merrill Lynch 's $ 1.97 billion losses which was Lehman's 55th consecutive profitable quarter. The firm's stock price leapt 46 percent after that announcement. In 2008, Lehman faced an unprecedented loss to
7566-517: The original head office in Woolwich . Barclays closed 171 branches in the UK in 2001, many of them in rural communities: Barclays called itself "The Big Bank", but this name was quickly given a low profile after a series of embarrassing PR stunts. On 31 October 2001, Barclays and CIBC agreed to combine their Caribbean operations to establish a joint venture company known as FirstCaribbean International Bank (FCIB). In April 2002, Barclays enacted
7663-470: The president of the Federal Reserve Bank of New York , called a meeting on the future of Lehman, which included the possibility of an emergency liquidation of its assets. Lehman reported that it had been in talks with Bank of America and Barclays for the company's possible sale; however, both Barclays and Bank of America ultimately declined to purchase the entire company, in the former case because
7760-431: The provision of free, independent, third-party, research to the firms' clients. Lehman was one of the first Wall Street firms to move into the business of mortgage origination . In 1997, Lehman bought Colorado-based lender, Aurora Loan Services(not a bank), an Alt-A lender. In 2000, to expand their mortgage origination pipeline, Lehman purchased West Coast subprime mortgage lender BNC Mortgage LLC. Lehman quickly became
7857-802: The real estate components of the deal would be $ 1.29 billion, including $ 960 million for Lehman's New York headquarters and $ 330 million for two New Jersey data centers. Lehman's original estimate valued its headquarters at $ 1.02 billion but an appraisal from CB Richard Ellis this week valued it at $ 900 million." Barclays were not to acquire Lehman's Eagle Energy unit, but to have entities known as Lehman Brothers Canada Inc, Lehman Brothers Sudamerica, Lehman Brothers Uruguay and its Private Investment Management business for high-net-worth individuals. Finally, Lehman would retain $ 20 billion of securities assets in Lehman Brothers Inc that are not being transferred to Barclays. Barclays acquired
7954-537: The restructuring firm Alvarez and Marsal was appointed as chief restructuring officer and subsequently chief executive officer of the company. Later that day, the Australian Securities Exchange (ASX) suspended Lehman's Australian subsidiary as a market participant after clearing-houses terminated contracts with the firm. Lehman shares tumbled over 90% on September 15, 2008. The Dow Jones closed down just over 500 points on September 15, 2008, which
8051-404: The sale of the company, was reportedly searching for a buyer as its stock price dropped another 40 percent on September 11, 2008. Just before the collapse of Lehman Brothers, executives at Neuberger Berman sent e-mail memos suggesting, among other things, that the Lehman Brothers' top people forgo multimillion-dollar bonuses to "send a strong message to both employees and investors that management
8148-495: The second fiscal quarter, Lehman reported losses of $ 2.8 billion and was forced to sell off $ 6 billion in assets. In the first half of 2008 alone, Lehman stock lost 73% of its value as the credit market continued to tighten. On June 9, 2008, Lehman Brothers announced a US$ 2.8 billion second-quarter loss, its first since being spun off from American Express , as market volatility rendered many of its hedges ineffective during that time. Lehman also reported that it had raised
8245-452: The slave trade in 1756. David Barclay of Youngsbury (1729–1809), on the other hand, was a noted abolitionist , and Verene Shepherd , the Jamaican historian of diaspora studies , singles out the case of how he chose to free his slaves in that colony . In 1776, the firm was styled "Barclay, Bevan and Bening" and remained so until 1785, when another partner, John Tritton, who had married
8342-460: The son of a Jewish cattle merchant, emigrated to the United States from Rimpar , Bavaria . He settled in Montgomery, Alabama , where he opened a dry-goods store, "H. Lehman". In 1847, following the arrival of his brother Emanuel Lehman , the firm became "H. Lehman and Bro." With the arrival of their youngest brother, Mayer Lehman , in 1850, the firm changed its name again and "Lehman Brothers"
8439-508: The unfolding of the 2007–2008 financial crisis . The market collapse also gave support to the " too big to fail " doctrine. After Lehman Brothers filed for bankruptcy, global markets immediately plummeted. The following day, major British bank Barclays announced its agreement to purchase, subject to regulatory approval, a significant and controlling interest in Lehman's North American investment-banking and trading divisions, along with its New York headquarters building. On September 20, 2008,
8536-572: The war the company helped finance Alabama's reconstruction . The firm's headquarters was eventually moved to New York City, where it helped found the New York Cotton Exchange in 1870, commodifying the crop; Emanuel sat on the board of governors until 1884. The firm also dealt in the emerging market for railroad bonds and entered the financial-advisory business. Lehman became a member of the Coffee Exchange as early as 1883 and finally
8633-509: The week) on reports that the state-controlled Korea Development Bank was considering buying the bank. Most of those gains were quickly eroded as news came in that Korea Development Bank was "facing difficulties pleasing regulators and attracting partners for the deal." On September 9, Lehman's shares plunged 45% to $ 7.79, after it was reported that the state-run South Korean firm had put talks on hold. Investor confidence continued to erode as Lehman's stock lost roughly half its value and pushed
8730-508: The world's first cash machine , in Enfield ; Barclays Bank, Enfield . The British actor Reg Varney was the first person to use the machine. In 1969, a planned merger with Martins Bank and Lloyds Bank was blocked by the Monopolies and Mergers Commission , but the acquisition of Martins Bank on its own was later permitted. Also that year, the British Linen Bank subsidiary was sold to
8827-434: Was approved. After a 7-hour hearing, U.S. bankruptcy judge James Peck ruled: "I have to approve this transaction because it is the only available transaction. Lehman Brothers became a victim, in effect the only true icon to fall in a tsunami that has befallen the credit markets. This is the most momentous bankruptcy hearing I've ever sat through. It can never be deemed precedent for future cases. It's hard for me to imagine
8924-544: Was at the time the largest drop in a single day since the days following the attacks on September 11, 2001. In the United Kingdom, the investment bank went to administration with PricewaterhouseCoopers appointed as administrators. In Japan, the Japanese branch, Lehman Brothers Japan Inc., and its holding company filed for civil reorganization on September 16, 2008, in Tokyo District Court . On September 17, 2008,
9021-649: Was demoted. Bart McDade was named to succeed Gregory as president and COO, when several senior executives threatened to leave if he was not promoted. McDade took charge and brought back Michael Gelband and Alex Kirk, who had previously been pushed out of the firm by Gregory for not taking risks. Although Fuld remained CEO, he soon became isolated from McDade's team. In August 2008, Lehman reported that it intended to release 6% of its work force, 1,500 people, just ahead of its third-quarter-reporting deadline in September. On August 22, 2008, shares in Lehman closed up 5% (16% for
9118-428: Was founded. During the 1850s, cotton was one of the most important crops in the United States, and was Alabama's highest-grossing cash crop. Until the U.S. Civil War, nearly all U.S. cotton was produced by slave labor , and by the 1860 census, slaves constituted nearly 45% of Alabama's total population. Mayer Lehman was listed as the owner of seven slaves ("three males and four females ranging in age from 5 to 50") in
9215-507: Was kept as the branch manager until he retired in the sixties. In May 1958, Barclays was the first UK bank to appoint a female bank manager. Hilda Harding managed Barclays' Hanover Square branch in London until her retirement in 1970. In 1965, Barclays established a US affiliate, Barclays Bank of California, in San Francisco . Barclays launched the first credit card in the UK, Barclaycard , in 1966. On 27 June 1967, Barclays deployed
9312-587: Was not only retained, but expanded, including the construction of a backup-trading facility. In June 2003, the company was one of ten firms which simultaneously entered into a settlement with the U.S. Securities and Exchange Commission (SEC), the Office of the New York State Attorney General and various other securities regulators, regarding undue influence over each firm's research analysts by its investment-banking divisions. Regulators alleged that
9409-806: Was to be used for Barclays mortgages. Barclays also exited retail-banking operations in the Caribbean-region which extended as far back as 1837 through selling of its joint venture stake in FirstCaribbean International Bank (FCIB) to CIBC for between $ 989 million and $ 1.08 billion. In March 2007, Barclays announced plans to merge with ABN AMRO , the largest bank in the Netherlands. However, on 5 October 2007 Barclays announced that it had abandoned its bid, citing inadequate support by ABN shareholders. Fewer than 80% of shares had been tendered to Barclays' cash-and-shares offer. This left
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