Barclays settles Lehman Brothers litigation; sees $750m boost to profit

5th Jun 2015 15:55

Barclays said on Friday that it has reached a settlement with the SIPA Trustee for Lehman Brothers to resolve outstanding litigation between the parties relating to the acquisitions by Barclays of most of Lehman's assets in September 2008.As a result of the settlement, Barclays expects to recognise a pre-tax gain of about $750m in its 2015 interim results, to be announced on 29 July.All of the outstanding issues between Barclays and the Trustee will be settled and Barclays will receive all but $80m of the $1.1bn of assets which were still disputed by the Trustee.Following implementation of the settlement, Barclays will have received all of the assets it claimed in the litigation with the exception of this $80m and about $255m of margin for exchange-traded derivatives (exclusive of interest) still owing but expected from third parties.The settlement still needs to be approved by the Bankruptcy Court to become effective.