A judge in New York has ruled that Barclays' takeover of a large proportion of Lehman Brothers' US operations in 2008 was "imperfect" but nevertheless fair.

The defunct investment bank Lehman had sued Barclays for $11bn (£6.8bn) in damages, on the grounds that the bank was given special treatment.

Lehman sold their US operations to Barclays for $1.85bn in a speedily put-together deal that was seen by many as crucial in keeping the international banking system afloat at the peak of the credit crisis in September 2008.

The sale was agreed five days after Lehman filed for Chapter 11 bankruptcy protection.

Lehman's bankruptcy estate had wanted to extract a $11bn "windfall" payment from Barclays.

US Bankruptcy Judge James Peck rejected Lehman's bankruptcy estate's request for a $11bn "windfall" payment from Barclays, saying that the deal was "adequate under the exceptional circumstances of Lehman Week".

Peck said that the sale saved thousands of jobs in the financial services sector and averted "a potentially disastrous piecemeal liquidation".

Bank of America and JP Morgan Chase are among the other banks Lehman is also suing in an attempt to recover assets for creditors.