The administrators of the UK and European arm of bankrupt investment bank Lehman Brothers are making better money than the bankers.
Lehman’s administrators paid more than the bankers
PricewaterhouseCoopers, which has around 300 employees working on the Lehman administration, is being paid £4m a week, the accounting firm revealed yesterday. By contrast, the monthly wage bill for Lehman’s remaining 1,100 bankers is £8m – £2m a week – though that does not include planned “small retention bonuses”.
PwC has been in charge for nine weeks, taking the cost of the administration so far to £45m. Tony Lomas, the PwC partner leading the process, said it was impossible to estimate the final bill but “it’s going to be an expensive process”.
Asked about timing, he drew comparisons with the administration of Enron’s UK operations, on which he also worked. “We’re still doing bits and pieces on Enron. [That's] seven years old. This is 10 times as big and much more complicated,” Mr Lomas said. At the current rate, the final Lehman bill after seven years would be £1.4bn.