PWC: Lehman US owes Europe $8bn

by Dave Keating | September 22, 2008 at 11:24 pm

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Just one of many risky practices Lehman Brothers seems to have been engsged in was storing money belonging to the European headquarters of the firm in New York overnight to earn interest. It seems that in the final days before the firm's collapse, that money was not returned to Europe.

The European administrators of failed US investment bank Lehman Brothers have filed a court order in New York demanding $8bn (£4.4bn) be returned from the US to London.

A PricewaterhouseCoopers (PwC) spokesman said the money was needed to pay creditors, salaries, property bills and other day-to-day expenses.

Lehman's European headquarters, where 4,500 staff worked, is based in London.

PwC is currently trying to find buyers for various parts of Lehman Europe.