Lehman Brothers administrators demand $8bn from New York HQ

Lehman Brothers European administrators are demanding $8 billion (£4.4 billion) to be returned from the US headquarters to London, they filed the court order in New York.

The UK administrators PricewaterhouseCoopers (PwC) said the money was needed to pay salaries, creditors, property bills and other day-to-day expenses. PwC are currently trying to find buyers for different departments of the failed investment bank Lehman Brothers Europe.

The BBC’s Joe Lyman said before Lehman Brothers went into administration on September 15 ’08 that the failed bank’s European arm transferred money on a regular basis from its London headquarters to its parent company in New York. “The money was usually kept overnight – earning interest – before being sent back to London.”

But on September 14 ’08 before Lehman filed for Chapter 11 bankruptcy protection the money did no get transferred, which left Lehman Europe $8 billion down, it was also reported that a formal request for the money to be transferred had been given earlier in the week.

Read the full story at the bbc