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Normura to keep Lehman's IT systems... for now

Karl Flinders
Wednesday 24 September 2008 04:42

Asian investment bank Nomura will run the IT systems of parts of Lehman Brothers alongside its own system following its acquisition of the troubled investment bank.

Lehman Brothers, which employs 5000 UK employees including significant numbers of IT staff, filed for bankruptcy earlier this month.

Administrator PriceWaterhouseCoopers negotiated the sale of the investment banking and equities businesses of Lehman Brothers to Nomura, securing a deal on Monday that safeguarded the jobs of about 2500 people.

A Nomura spokeswoman said the systems of the two banks would eventually be integrated, although it was too early to say when.

"The priority is to get the businesses up and running at their current locations and we will run two separate systems for now. We will then integrate, but there is no time line," she said.

"This sale, which is conditional on a number of issues, means the continuing employment of around 2,500 Lehman staff, a vast number of whom have been working with us to get this unprecedented deal done."

Tony Rawlinson, managing director of financial services at sourcing consultant Equaterra, said the two platforms are proven and Nomura will begin integration once it finalises its consolidation strategy.

"It is not a question of technology because both sets of systems are already used but it is about the economics of consolidation," he added.

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