Barclays entitled to $4bn assets over Lehman Bros collapse

British bank Barclays is entitled to $4 billion in assets stemming from the Lehman Brothers collapse, as the US supreme court rejected an appeal from the bankruptcy trustee for the firm's brokerage business.

The justices left intact a federal appeals court ruling that said Barclays acquired the assets as part of a hastily drafted purchase agreement in September 2008. Barclays bought most of Lehman’s North American brokerage assets in that deal.

The trustee, James Giddens, sought to recoup the money, most of which is already in Barclays' possession.

“We are disappointed but remain focused on continued progress in winding down and closing out the LBI estate,” Kent Jarrell, a spokesman for Giddens, said . “The trustee appropriately reserved for the Barclays litigation, so the decision does not impact distributions already completed or assets on hand for potential additional distributions to unsecured general creditors.”

In his appeal, Giddens said lawyers for both sides had told a bankruptcy judge that London-based Barclays wouldn’t receive any cash in the deal. He also said the appeals court gave too much weight to a clarification letter the two sides drafted. – (Bloomberg)