Lehman employees in Israel office 'were like princes'

On the top floor of the Platinum Tower, on Tel Aviv's Ha'arba'a Street, between the venture capital funds and investment firms, sit the offices of Lehman Brothers in Israel. Those offices were all but abandoned Tuesday. At the restaurant on the ground floor sat a few people reading the business papers in disbelief.

"The crisis has been enveloping us for months, but if Lehman can fall, anything can happen," said a diner in the restaurant who works in a different firm in the same building, and who preferred not to be identified. "It is simply terrifying to think about it. This is a place with pride, and for the past few years they went around like princes. It never would have occurred to you that they might lose their jobs overnight. It's unpleasant to look them in the eyes. This a tough time for them," he added.

Less than a month ago, the head of Lehman Brothers in Israel, Len Rosen, vehemently denied the claims that the investment bank was shaky, telling the business daily Globes that all the rumors about the investment firm were nonsense. Rosen even claimed that business at Lehman had never been better.

Since the investment bank announced its bankruptcy, the Israeli management has been ordered not to comment.

The local branch of Lehman employs 20, some of them Israeli and some American. When the news of the collapse came, Rosen gathered the workers and told them he was awaiting orders from the home office. Since the Israeli branch deals only with investment banking and not real estate or financial instruments, there is still hope it can be sold to another company, which would save it from closing.

Nevertheless, one Lehman employee said Tuesday he did not have much hope for such an outcome. "People went to sleep with the news someone was buying the firm, and when they woke up in the morning they saw there was no deal and the bank went bankrupt. Some are putting out feelers and looking for work, but the situation is not good for the entire market."