Barclays Acquires $2b of Lehman Assets

Employees at Lehman are reporting that Robert "Bob" Diamond of the British bank Barclays stood on the trading floor of Lehman Brothers a few minutes ago, and is now going from floor to floor announcing a $2 billion acquisition of several of Lehman's profitable assets, including its broker-dealer.

The sounds of God Save the Queen played over the loudspeakers following the announcement, according to bankers who were there. "Someone just opened a bottle of champagne," one banker said, adding that employees "are rejoicing, because now we can keep our jobs."

A deal has been reached, according to a source familiar with the matter. The person added that a formal announcement will be made either this evening or tomorrow morning.