Barclay buys parts of Lehman Brothers

NEW YORK, Sept. 17 (UPI) -- British bank Barclays announced it bought failed Lehman Brothers' U.S. investment banking and capital market units for just over $1 billion.

Bob Diamond, Barclays' president and investment bank chief, announced the deal to Lehman's staff on the trading floor of the bank's U.S. headquarters in New York, The Times of London reported Wednesday.

"I feel your pain," he told employees of the investment firm that was forced to declare Chapter 11 bankruptcy Monday after failing to find a buyer and failing to convince the U.S. government to provide a financial lifeline.

Under the terms of the agreement, Barclays will pay $250 million for the business and another $800 million for the New York headquarters and two facilities in New Jersey. The British bank said it will raise $1 billion from shareholders to partially fund the acquisition, the British newspaper said.

Diamond called the purchase a "once in a lifetime opportunity for Barclays."