"On Monday, I detailed how New York City is as prepared as we could be for the latest Wall Street turmoil because we've budgeted responsibly, saved for the future, worked to diversify our economy, sharpened our competitive advantages, and built an exceptionally talented workforce. I pointed out then that after the Bear Stearns collapse, a large percentage of its employees found jobs in other financial service firms in the City. Now, it appears this will also be true for the bulk of the employees of Lehman Brothers in New York City.

"I spoke several times with Dick Fuld, CEO of Lehman Brothers on Tuesday, who informed me that the company had come to an agreement with Barclays PLC which will buy key segments of the Lehman Brothers operation virtually intact. This means that the bulk of Lehman's New York City-based employees will be retained - great news for those employees, their families, and our entire City. It's also a boost for our commercial real estate market, because the former Lehman divisions will continue be based in New York. I want to congratulate Dick Fuld, who has worked his heart out for the company, and his entire team for persevering through this extraordinarily difficult time.

"Today's agreement demonstrates how the ideas, skills, and enterprise of our City's workforce offer world-class value that is more lasting and reliable than ups and downs of the market. But this deal is happening not just because financial services firms worldwide know that New York City offers the most highly trained, best experienced, workforce in the world, but also because the members of our workforce want to remain in New York. Talent attracts capital more effectively than capital attracts talent. As City officials, our job is to keep making the investments in our streets, schools, parks and cultural institutions that continue to make New York the most attractive place for the best and brightest to live and work - and thus the financial capital of the world."