British bank Barclays is in talks with Lehman Brothers to buy its core US broker-dealer businesses, including equity, fixed income, M&A advisory and other parts, people familiar with the matter said.
Barclays said earlier today it was in talks to buy some of Lehman's assets. It declined to comment further.
The talks mainly involved the core US business, which has 8,000 to 10,000 staff, but could include some of its global businesses, the sources said.
It doesn't include Lehman's asset management and wealth management arms and wouldn't leave the UK bank exposed to Lehman's troubled assets.
The sources said there is an urgency to the talks, as a deal would need to be struck before staff and clients leave and damage the franchise.