It was reported yesterday that he will admit to a US bankruptcy judge that Barclays was not entirely aware of what assets and liabilities it was taking on through the deal.
Varley is due to given evidence as part of a protracted case between Barclays and Lehman's creditors, the US bank's trustee and its estate. The three parties that have brought the action against Barclays claim it unfairly profited from the deal, which was one of the few positive takeovers during the crisis.