UK banking giant Barclays has emerged to rescue Lehman Brothers' investment banking operations in India. The Bank has already announced to acquire financial services major Lehman Brothers' North American investment banking, capital markets operations and supporting infrastructure for US $1.75 billion. It also acquired the New York headquarters of Lehman Brothers.

Barclays is considering the possibility of acquiring the profitable Lehman assets in Asia and this has ignited hope among Lehman's employees in India that at least some of them might be able to save their jobs.

"We now have the opportunity, and it's an opportunity that we're looking at quickly and seriously, to see what else might fit with the businesses we're developing around the world," said Chief Executive John Varley, Barclays.

Lehman Brothers was the fourth largest investment bank and the oldest bank in the US before it filed for a bankruptcy.

Barclays had been looking for investment banking opportunities in India and acquiring Lehman would provide the bank with ready institutional and investment banking desks plus regulatory clearances.

The bank is engaged in extending private banking and in selling structured products to the companies.

In the last quarter of 2008, Barclays also decided to launch its wealth management business in India.

In an internal memo circulated to employees, Lehman chief executive Richard Fuld said talks were under way to sell "hopefully, in the near term, parts of our European and Asian operations as well".

"Our information is that if all goes well, the Asia deal will be sealed in the next 48 hours," said a top source at Lehman Brothers' investment banking division in Mumbai's Worli area where 100 people work.