Normura which acquired the back-office operations of Lehman Brothers in India, will reoperationalise unit only by January 2009. The industry sources have also pointed out that recruitments for the back office operations at Normura would commence only after June 2009. Merrill Lynch, acquired by Bank of America, too has plans to start hiring for its Indian operations post June 2009.
Right now, employees at the Powai office of Nomura , engaged in departments like cash reconciliations and trade settlements are whiling away their time just by attending office but there is nothing to do at the workplace.
?Currently, the employees have been told that the operations or rather processes for the back office entity would kick off only in January 2009. Those involved in trade settlements and cash reconciliations are idle at the moment,? said a source close to the development working with Normura?s (previously Lehman) back office operations based out of Hiranandani, Powai.
However, there are few employees or rather departments, engaged in the Mumbai office, who are helping out the US team to complete the liquidation process, added the source. Apparently, after Normura taking over Lehman Brothers, has asked LB employees to sign a one-year contract, paying them a joining bonus. The increments for the LB employees will take place only in the month of April, said sources close to the development.
About 2,000 back office employees of Lehman are based out of Mumbai. They handle different operations like cash reconciliation, trade settlements and information technology for the investment bank. Nomura Holdings Inc agreed to acquire Lehman Brothers Holdings Inc?s Indian operations in a several billion yen deal, in October 2008.
Battered by huge losses in the US mortgage market, Lehman Brothers filed for bankruptcy protection with the US regulator. Since then, the firm had been disposing off its assets and Nomura snapped up the investment bank’s Asia-Pacific, European and Middle East operations. Lehman’s North American operations were acquired by British banking major, Barclays.