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Lehman May 6
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Rothesay Life Completes $1 Billion Buyout of Lehman Pensions
May 5, 2015 | The Wall Street Journal
By Patrick Fitzgerald
Corporate pension insurer Rothesay Life on Wednesday completed a £675 million ($1.02 billion) buyout of the pension plan for Lehman Brothers’ European arm. Under the deal, the London-based insurer will take over the liability for the defined-benefits pension plan of Lehman Brothers International (Europe). The so-called bulk annuity deal... -
Lehman Brothers' UK Pension Scheme, Rothesay Life Agree 675 Million Pound Deal
May 6, 2015 | Reuters
By Carolyn Cohn
The British pension scheme of defunct U.S. bank Lehman Brothers has agreed a 675 million pound ($1 billion) "bulk annuity" deal to transfer the risk of the scheme to pensions insurer Rothesay Life, both parties said on Wednesday. The growing bulk annuity market in Britain enables insurers to take on the risk of company defined benefit, or final... -
Lehman Brothers' Pensioners To Be Paid In Full After Rothesay Deal
May 6, 2015 | The Telegraph (UK)
By Marion Dakers
Former Lehman Brothers bankers will get their full pensions after administrators for the collapsed bank struck a deal to transfer £675m-worth of pension liabilities to the insurance firm Rothesay Life. Six and a half years after Lehman’s collapse, and almost a year after administrators plugged a £184m pension funding... -
Goldman's Pensions Firm Takes on Lehman's Pensions
May 6, 2015 | Financial News
By Mark Cobley
The insurance firm founded by Goldman Sachs has taken on Lehman Brothers' UK pension scheme, in a £675 million deal that could boost the retirement income of around 2,400 former Lehman staff from July. -
Former Lehman Bankers In Line For Healthier Pension Payouts
May 6, 2015 | City A.M. (UK)
By Michael Bow
More than 2,000 ex-Lehman bankers are set for bigger pension payments after bosses of the retirement plan struck a £675m deal to offload it to an insurance firm. Members of the Lehman Brothers Pension Scheme will see payment restrictions – put into place after the bank’s dramatic collapse nearly seven years ago – lifted in July after insurer... -
Barclays Share Price: Bank Wins Ruling In Lehman Case
May 5, 2015 | iNVEZZ
By Jane Tindall
Barclays (LON:BARC) is entitled to roughly $4 billion of disputed assets as part of its purchase of Lehman Brothers after the US Supreme Court rejected an appeal from a challenger yesterday. The top US court denied an appeal from James Giddens, the trustee managing the liquidation of the investment bank, which failed in 2008 at the height ... -
US Supreme Court Favours Barclays in $4-bn Dispute With Lehman
May 5, 2015 | Domain-B
The US Supreme Court yesterday dismissed a petition by creditors of collapsed banking giant Lehman Brothers Holdings Inc with claims against British banking giant Barclays Plc on $4-billion of disputed assets. The disputed assets relate to Barclays acquisition of the bulk of Lehman's brokerage business at the height of the 2008 global...
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Rothesay Life Completes $1 Billion Buyout of Lehman Pensions
May 5, 2015 | The Wall Street Journal
By Patrick Fitzgerald
Corporate pension insurer Rothesay Life on Wednesday completed a £675 million ($1.02 billion) buyout of the pension plan for Lehman Brothers’ European arm.
Under the deal, the London-based insurer will take over the liability for the defined-benefits pension plan of Lehman Brothers International (Europe). The so-called bulk annuity deal ensures some 2,466 former Lehman employees in Britain will finally receive their full pensions more than six years after the investment bank’s collapse.
“Since the bankruptcy of Lehman Brothers in 2008, the Trustees have been striving to secure the pension benefits promised to members” of the plan, said Peter Gamester,chairman of the trustees for the Lehman plan. “The agreement with Rothesay Life achieves this goal as it enables members’ defined benefit entitlements to be paid in full.”
Rothesay Life, which was formed in 2007 byGoldman Sachs, specializes in bulk annuity buyouts of corporate pension funds. The deals allow pension funds to transfer their pension liabilities to insurers like Rothesay, which has taken on the financial risks of U.K. pension plans for Panasonic,General Motors andBritish Airways, among others.
Pension payments will initially be made by the plan until the insurer takes over paying benefits to members directly when the bulk annuity converts to a full buyout, according to PricewaterhouseCoopers, which is handling the liquidation of Lehman’s U.K.-based arm.
“This is our sixth such transaction in under 12 months and we expect this trend to continue throughout 2015 as companies look to settle pension liabilities in full while pricing conditions remain favorable,” said Rothesay Life Chairman Keith Satchell.
Private-equity giant Blackstone Group, along with Singapore sovereign-wealth fund GIC and insurer MassMutual, bought a majority stake in Rothesay Life from Goldman Sachs in December 2013.
Lehman Brothers’ U.K. business is funneling some $300 million to its pensioners as part of the Rothesay deal, part of a settlement announced last year between the administrators of Lehman’s U.K. business and U.K. pension authorities
That deal, which shored up the U.K. pension plan that was left underfunded at the time of Lehman’s September 2008 collapse, capped years of legal wrangling between Lehman’s administrators and the U.K.’s Pensions Regulator.
Legislation enacted in 2004 set up the U.K.’s powerful Pensions Regulator and the Pension Protection Fund. Like the U.S. Pension Benefit Guaranty Corp., the U.K. Pension Protection Fund shoulders the pension obligations for orphan plans left behind by struggling companies.
In the U.S., the PBGC typically receives an unsecured claim for the shortfall in an underfunded pension plan when a company files for bankruptcy and seeks to jettison its obligations. But in recent years the U.K. Pensions Regulator has taken a more aggressive approach in U.S. bankruptcies—including those of Eastman Kodak Co. and Nortel Networks Corp., as well as in Lehman—arguing it deserves priority over other unsecured creditors...
For full story:
http://www.wsj.com/articles/rothesay-life-completes-1-billion-buyout-of-lehman-pensions-1430866862
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Lehman Brothers' UK Pension Scheme, Rothesay Life Agree 675 Million Pound Deal
May 6, 2015 | Reuters
By Carolyn Cohn
The British pension scheme of defunct U.S. bank Lehman Brothers has agreed a 675 million pound ($1 billion) "bulk annuity" deal to transfer the risk of the scheme to pensions insurer Rothesay Life, both parties said on Wednesday.
The growing bulk annuity market in Britain enables insurers to take on the risk of company defined benefit, or final salary, pension schemes.
Many of these schemes are in deficit due to weak investment returns as a result of low interest rates, and most are closed to new members.
Lehman Brothers collapsed in 2008, a major trigger for the global financial crisis.
"Since the bankruptcy of Lehman Brothers ... the trustees have been striving to secure the pension benefits promised to members of the scheme," Peter Gamester, chairman of the trustees of the scheme, said in a statement.
"The agreement with Rothesay Life achieves this goal, as it enables members' defined benefit entitlements to be paid in full."...
For full story:
http://uk.reuters.com/article/2015/05/06/uk-lehman-pension-rothesaylife-idUKKBN0NQ2GG20150506
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Lehman Brothers' Pensioners To Be Paid In Full After Rothesay Deal
May 6, 2015 | The Telegraph (UK)
By Marion Dakers
Former Lehman Brothers bankers will get their full pensions after administrators for the collapsed bank struck a deal to transfer £675m-worth of pension liabilities to the insurance firm Rothesay Life.
Six and a half years after Lehman’s collapse, and almost a year after administrators plugged a £184m pension funding shortfall, Rothesay will take responsibility for paying almost 2,500 members of the Lehman defined benefit retirement scheme.
The deal secures the pension income of Lehman staff, some of whom were receiving limited payments while the scheme was assessed by The Pensions Regulator.
Last August, the regulator came to a long-awaited settlement with Lehman's administrators at PwC to address the pension scheme's funding hole, clearing the path for them to hand over the liabilities. The settlement also meant that former Lehman staff could avoid turning to the Pension Protection Fund, as PwC had previously intended.
The PPF safety net covers pension payments up to £32,761, which would have left some Lehman staff out of pocket. Instead, the pensioners are now expected to be paid in full, including back pay, in July when the assessment period ends, according to PwC.
“Since the bankruptcy of Lehman Brothers in 2008, the trustees have been striving to secure the pension benefits promised to members of the scheme. The agreement with Rothesay Life achieves this goal as it enables members’ defined benefit entitlements to be paid in full,” said Peter Gamester, chairman of trustees of the Lehman Brothers pension scheme. The pensions deal also represents the latest landmark in the work to wind down what remains of Lehman Brothers, following the bankruptcy of the US parent company in 2008...
For full story:
http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/11583785/Lehman-Brothers-pensioners-to-be-paid-in-full-after-Rothesay-deal.html
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Goldman's Pensions Firm Takes on Lehman's Pensions
May 6, 2015 | Financial News
By Mark Cobley
The insurance firm founded by Goldman Sachs has taken on Lehman Brothers' UK pension scheme, in a £675 million deal that could boost the retirement income of around 2,400 former Lehman staff from July.
Subscription needed for full article:
http://www.efinancialnews.com/story/2015-05-06/goldmans-pensions-firm-takes-on-lehmans-pensions?mod=rss-assetmanagement
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Former Lehman Bankers In Line For Healthier Pension Payouts
May 6, 2015 | City A.M. (UK)
By Michael Bow
More than 2,000 ex-Lehman bankers are set for bigger pension payments after bosses of the retirement plan struck a £675m deal to offload it to an insurance firm.
Members of the Lehman Brothers Pension Scheme will see payment restrictions – put into place after the bank’s dramatic collapse nearly seven years ago – lifted in July after insurer Rothesay Life agreed to take over the liabilities of the scheme.
Rothesay, co-owned by Goldman Sachs, Blackstone and Singapore’s sovereign wealth fund GIC, has taken on £675m worth of assets owned by the plan and will eventually pay the pensions of about 2,300 ex-Lehman employees.
Lehman pensions were paid by the UK’s pension lifeboat fund, the Pension Protection Fund (PPF), in the years after the company’s collapsed but future payments are capped at just over £36,000 a year.
From July the restrictions will be lifted and benefits will be paid in full – including back payments.
“Since the bankruptcy of Lehman Brothers in 2008, the trustees have been striving to secure the pension benefits promised to members of the scheme,” chairman of the plan’s trustee board Peter Gamester said...
For full story:
http://www.cityam.com/215179/former-lehman-bankers-line-healthier-pension-payouts
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Barclays Share Price: Bank Wins Ruling In Lehman Case
May 5, 2015 | iNVEZZ
By Jane Tindall
Barclays (LON:BARC) is entitled to roughly $4 billion of disputed assets as part of its purchase of Lehman Brothers after the US Supreme Court rejected an appeal from a challenger yesterday.
The top US court denied an appeal from James Giddens, the trustee managing the liquidation of the investment bank, which failed in 2008 at the height of the financial crisis. The judges left intact a federal appeals court ruling, which said Barclays acquired the assets as part of a hastily drafted purchase agreement.
A spokesperson for Giddens said that the trustee was "disappointed," but remained "focused on continued progress in winding-down and closing out the LBI estate". Barclays has not commented on the development. Separately, Barclays – which in 2012 became the first lender to settle an investigation into manipulation of the London interbank offered rate, a global benchmark interest rate known as Libor – has faced fresh scrutiny over its role in the scandal, after a storage company launched a multimillion-pound legal claim against the British bank. The Independent today reported that Rhino Enterprises, which has spent almost two years in administration, blamed Barclays for its financial troubles. A writ filed at the High Court in London and seen by The Independent says: “Barclays was knowingly participating with other banks in making false Libor submissions in all key currencies, including sterling...
For full story:
http://invezz.com/news/equities/18226-Barclays-share-price-Bank-wins-ruling-in-Lehman-case-
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US Supreme Court Favours Barclays in $4-bn Dispute With Lehman
May 5, 2015 | Domain-B
The US Supreme Court yesterday dismissed a petition by creditors of collapsed banking giant Lehman Brothers Holdings Inc with claims against British banking giant Barclays Plc on $4-billion of disputed assets.
The disputed assets relate to Barclays acquisition of the bulk of Lehman's brokerage business at the height of the 2008 global financial crisis (See: Barclays in talks to acquire Lehman's securities business).
Lehman was the fourth-largest US investment bank with assets of $639 billion when it filed for chapter 11 bankruptcy in September 2008 following the sub-prime mortgage crisis, and became by far the largest insolvency in the nation's history.
The Supreme Court denied an appeal filed by Lehman, upholding the ruling of the US second circuit court of appeals in August 2014, which affirmed an earlier district court decision that went in favour of the British bank.
In December the trustee for the liquidation of Lehman James Giddens appealed the lower courts' decisions to award $4-billion of disputed cash assets, aiming to recover money for the brokerage's creditors.
He argued that allowing Barclays to keep the $4 billion could broadly inflict long-term damage to the section of the bankruptcy code that allows a trustee to sell a debtor's assets outside of the ordinary course of business.
In September 2008, US bankruptcy judge in Manhattan James Peck approved Barclay's purchase of most of Lehman's brokerage business. The dispute over certain cash assets with Lehman cropped up soon after Barclay's acquisition (Barclays wins dispute over assets from Lehman acquisition).
The row was over the margin assets held by third parties to support Lehman exchange-traded derivatives business...
For full story:
http://www.domain-b.com/finance/banks/barclays/20150505_lehman.html
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Rothesay Life
Barclays Plc
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