IT Fallout of the Wall Street Crash
Wall Street's banking giants seek out the best computer equipment and the most robust networks that (lots and lots of ) money can buy. Now, as Lehman Bros and Merrill Lynch prepare for takeover, their IT infrastructure is their only truly viable asset, at least on paper. As for th human element, one should probably prepare for layoffs.
According to specialist website Datacenterknowledge.com, Lehman Brothers' two data centres were central to the deal in which Barclays paid $1.75bn to acquire most of Lehman's North American operations. The data centres and Lehman's headquarters building 'accounted for $1.5bn of the deal's value, with the British bank paying just $250m in cash for Lehman's North American investment banking and capital markets businesses,' it said.
The waves generated by Wall Street Crash 2.0 will also wash up on very distant shores. Expect to see them in Bangalore, for example, and other Indian centres that have ridden the boom in outsourcing of IT support. As Western institutions disappear or merge, there will be a need to liquidate or consolidate the service contracts they have with Indian companies. So service businesses that looked rock-solid six months ago are in for a turbulent time.
The article above also touches on cybersquatters' lunge for presumed merger-corrected bank URLs.