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Thousands lose jobs as Lehman crunched by credit

PUBLISHED: 16:07 15 September 2008 | UPDATED: 13:37 05 October 2010

A man carrying a box leaves the Lehman Brothers European Headquarters building in Canary Wharf in east London, on September 15, 2008. The British arm of US investment giant Lehman Brothers has been put into administration, accountancy firm PriceWaterhouseCoopers said Monday. AFP PHOTO/Ben Stansall (Photo credit should read BEN STANSALL/AFP/Getty Images)

A man carrying a box leaves the Lehman Brothers European Headquarters building in Canary Wharf in east London, on September 15, 2008. The British arm of US investment giant Lehman Brothers has been put into administration, accountancy firm PriceWaterhouseCoopers said Monday. AFP PHOTO/Ben Stansall (Photo credit should read BEN STANSALL/AFP/Getty Images)

2008 AFP

OFFICE staff began moving out their personal possessions from Leman Brothers in Canary Wharf this morning after the shock announcement that America's fourth-largest investment bank is filing for bankruptcy. Thousands of jobs are in jeopardy as a result of today's collapse

Mike Brooke

OFFICE staff began moving out their personal possessions from Leman Brothers in Canary Wharf this morning after the shock announcement that America’s fourth-largest investment bank is filing for bankruptcy protection.

Thousands of jobs are in jeopardy as a result of the collapse.

Lehman’s has been hit by losses of billions of dollars in the US mortgage market, amid a growing global financial crisis.

The chance that Lehman Brothers could collapse increased sharply after the strongest potential buyers pulled out at the weekend.

A rescue package was being discussed with Barclays and Bank of America, but negotiations were reported to have faltered when it became clear that the US Treasury was against using Federal government money to help clinch a deal.

The bank employs some 5,000 staff in Britain, mostly at Canary Wharf, out of a 25,000 workforce worldwide.

Filing for bankruptcy protection under US Federal law allows the company time to reorganise and devise a plan to pay creditors over time.

Meanwhile, the parent company’s UK operations have been placed under administration and the business would be wound down in an orderly fashion, according to leading accounts PriceWaterhouse-Coopers.

The company has been keen to be involved in community links with London’s East End.

Just last week Lehman brothers was one of eight companies in the East End shortlisted for the Lord Mayor of London’s Dragon’ awards for community involvement.

It was down for the Education award for its work over the past 10 years at Bethnal Green’s Oaklands Secondary school.

It has been working with the school in Old Bethnal Green Road to focus on raising aspirations and levels of achievement for the 600 pupils.

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