Prime UK jobs at risk after Lehman collapse

Thousands of jobs were at risk today after the UK arm of troubled investment bank Lehman Brothers was placed into administration.

The move follows Lehman's US holding company filing for Chapter 11 bankruptcy protection this morning.

Tony Lomas, partner with administrator PricewaterhouseCoopers, said: "Because the group managed its funding on a global basis, the UK trading operation found itself unable to meet its obligations when the flow of funds dried up last night."

Lehman Brothers is thought to employ around 5,000 people in the UK.



PWC was appointed administrator of Lehman Brothers International (Europe).

It means Lehman Brothers, the principal UK trading company in the 158-year-old Lehman group, is in administration along with three other companies.

PWC said it was working to "wind down the business in as orderly a manner as possible".

Mr Lomas added: "Our priority now is to work with management and trading counterparties to agree the manner in which the assets and liabilities will be handled."

Lehman Brothers has been hit by billions of dollars-worth of sub-prime mortgage losses. Its UK collapse and US bankruptcy petition makes it the biggest casualty of the financial crisis afflicting global markets over the past year.



Lehman Brothers also run a subsidiary UK company, Capstone Mortgage Services.

Staff arriving at the offices in High Wycombe, Buckinghamshire, this morning said they did not yet know what impact the collapse would have on their jobs.

One said: "I heard the news on the radio this morning but I don't know yet what this could mean for us.

"We haven't been told anything yet so I think everyone is just turning up for work as normal."

Another woman worker said: "We are hoping for the best."



Koen Thijssen, carrying a box, was the first employee out of the building in Canary Wharf, but he said there would be more to follow.

Surrounded by camera crews and reporters and looking flustered, Mr Thijssen said: "This is it. I think it's going to be all of us."



Angela Knight, chief executive of the British Bankers' Association, said no UK banks were in a similar position to Lehman Brothers, which as an investment bank does not take retail deposits.

She said: "Lehman Brothers is a relatively small player in the UK.

"As far as UK high street banks are concerned, they have been recapitalising themselves in the last few months.

"Whilst it's not going to be a particularly comfortable day, the issue is one of a major US investment bank which has got into difficulty.

"No UK bank is in a similar situation."

In the UK, Lehman employs staff at its regional headquarters in Canary Wharf, London. It also has an office in High Wycombe, Buckinghamshire, which is a subsidiary called Capstone Mortgage Services.

As part of the UK administration, PWC said a number of Lehman group companies remained solvent and will continue to trade.

These companies include Lehman Brothers Asset Management (Europe), as well as others which manage property portfolios and loans.

Chapter 11 bankruptcy gives companies time to reorganise and work out a plan to pay creditors over time.

Under the terms of its bankruptcy petition, Lehman Brothers' holding company, Lehman Brothers Holdings International, is still pursuing the sale of its broker-dealer operations, as well as its investment management division.

Another subsidiary, Lehman Brothers Asset Management, will also not be subject to the petition.

News
exclusivePunk icon Viv Albertine on Sid Vicious, complacent white men, and why free love led to rape
News
i100
News
people
Sport
Colombia's James Rodriguez celebrates one of his goals during the FIFA World Cup 2014 round of 16 match between Colombia and Uruguay at the Estadio do Maracana in Rio de Janeiro, Brazil
sportColombian World Cup star completes £63m move to Spain
PROMOTED VIDEO
Sport
Antoine Griezmann has started two of France’s four games so far
sport
Life and Style
techYahoo Japan launches service to delete your files and email your relatives when you die
Life and Style
Child's play: letting young people roam outdoors directly contradicts the current climate
lifeHow much independence should children have?
Arts and Entertainment
Tycoons' text: Warren Buffett and Bill Gates both cite John Brookes' 'Business Adventures' as their favourite book
booksFind out why America's richest men are reading John Brookes
News
i100
Arts and Entertainment
<p><strong>2008</strong></p>
<p>Troubled actor Robert Downey Jr cements his comeback from drug problems by bagging the lead role in Iron Man. Two further films follow</p>
filmRobert Downey Jr named Hollywood's highest paid actor for second year running
Life and Style
Dale Bolinger arranged to meet the girl via a fetish website
life
Property
Sign here, please: Magna Carta Island
propertyYours for a cool £4m
News
ebookA unique anthology of reporting and analysis of a crucial period of history
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Business Analyst (Agile, SDLC, software)

£45000 - £50000 Per Annum + excellent benefits: Clearwater People Solutions Lt...

Finance Manager - Bank - Leeds - £300/day

£250 - £300 per day + competitive: Orgtel: Finance Manager - Accountant - Bank...

Compliance Officer - CF10, CF11, Compliance Oversight, AML, FX

£100000 - £120000 per annum + BONUS + BENEFITS: Harrington Starr: A leading fi...

Trade Floor Support - Investment Bank - London - £350 per day

£300 - £350 per day: Harrington Starr: Our client a leading investment bank is...

Day In a Page

Some are reformed drug addicts. Some are single mums. All are on benefits. But now these so-called 'scroungers’ are fighting back

The 'scroungers’ fight back

The welfare claimants battling to alter stereotypes
Amazing video shows Nasa 'flame extinguishment experiment' in action

Fireballs in space

Amazing video shows Nasa's 'flame extinguishment experiment' in action
A Bible for billionaires

A Bible for billionaires

Find out why America's richest men are reading John Brookes
Paranoid parenting is on the rise - and our children are suffering because of it

Paranoid parenting is on the rise

And our children are suffering because of it
For sale: Island where the Magna Carta was sealed

Magna Carta Island goes on sale

Yours for a cool £4m
Phone hacking scandal special report: The slide into crime at the 'News of the World'

The hacker's tale: the slide into crime at the 'News of the World'

Glenn Mulcaire was jailed for six months for intercepting phone messages. James Hanning tells his story in a new book. This is an extract
We flinch, but there are degrees of paedophilia

We flinch, but there are degrees of paedophilia

Child abusers are not all the same, yet the idea of treating them differently in relation to the severity of their crimes has somehow become controversial
The truth about conspiracy theories is that some require considering

The truth about conspiracy theories is that some require considering

For instance, did Isis kill the Israeli teenagers to trigger a war, asks Patrick Cockburn
Alistair Carmichael: 'The UK as a whole is greater than the sum of its parts'

Alistair Carmichael: 'The UK as a whole is greater than the sum of its parts'

Meet the man who doesn't want to go down in history as the country's last Scottish Secretary
Legoland Windsor's master model-makers reveal the tricks of their trade (including how to stop the kids wrecking your Eiffel Tower)

Meet the people who play with Lego for a living

They are the master builders: Lego's crack team of model-makers, who have just glued down the last of 650,000 bricks as they recreate Paris in Windsor. Susie Mesure goes behind the scenes
The 20 best days out for the summer holidays: From Spitfires to summer ferry sailings

20 best days out for the summer holidays

From summer ferry sailings in Tyne and Wear and adventure days at Bear Grylls Survival Academy to Spitfires at the Imperial War Museum Duxford and bog-snorkelling at the World Alternative Games...
Open-air theatres: If all the world is a stage, then everyone gets in on the act

All the wood’s a stage

Open-air productions are the cue for better box-office receipts, new audiences, more interesting artistic challenges – and a picnic
Rand Paul is a Republican with an eye on the world

Rupert Cornwell: A Republican with an eye on the world

Rand Paul is laying out his presidential stall by taking on his party's disastrous record on foreign policy
Self-preservation society: Pickles are moving from the side of your plate to become the star dish

Self-preservation society

Pickles are moving from the side of your plate to become the star dish
Generation gap opens a career sinkhole

Britons live ever longer, but still society persists in glorifying youth

We are living longer but considered 'past it' younger, the reshuffle suggests. There may be trouble ahead, says DJ Taylor