MUMBAI: After the fall of Wall Street’s giants, some of their captive units are increasingly looking like nobody’s children. Take the case of Leh man Brothers, whose North American operations were snapped up by Barclays and Asia and European operations were taken over by Nomura. The sale of the captive operations has taken much longer, though. And Nomura’s announcement to acquire the captive, coming nearly two weeks after its first announcement, has created a strange situation where it may have to service an eventual competitor.
The captive, which may have been a hot buy for any number of third party companies or banks, lost most of its sheen because it no longer had an existing customer. “When there is no business, what is the value in such an operation?’ asked a top executive with a leading third-party service provider. His company is unlikely to be interested in any of the captives going belly-up, he added.