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December 2, 2008 8:39:00 PM CST

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Bank of America in Talks to Buy Lehman Bros.

Posted Sep 11, 08 4:26 PM CDT in Business 

(Newser) – Bank of America is in preliminary talks to acquire struggling investment bank Lehman Brothers, the Wall Street Journal reports. Lehman has been shopping itself around in a bid to stave off collapse, but potential suitors are wary. Many want Washington to assist with a sale of the bank, whose shares dipped more than 40%, to under $5, today.

House Speaker Nancy Pelosi said the government must evaluate the impact a bailout of Lehman—and its $600 billion balance sheet—on the credit markets before any decision. If Washington stays neutral, Bank of America may back off. “It's over, man,” said one Lehman employee. “Unless we get bought out in the next 24 hours, it's over.”

Source Wall Street Journal

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Bank of America, which is holding preliminary discussions about a Lehman Brothers takeover, appears to be the troubled firm's best hope.   (AP Photo)
Lehman Brothers, in a desperate bid to survive, plans to sell a majority stake in its prized investment management business and could sell itself entirely.   (AP Photo/Jin Lee)
The need for a sale intensified as Lehman's shares dropped 45% in Thursday trading, creating new doubts about its ability to trade with other Wall Street firms while keeping its best talent.   (AP Photo)
Lehman may be unable to hold onto top talent as its share price tumbles and proves unpopular with other Wall Street firms.   (AP Photo/Katsumi Kasahara)
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It's over, man ... unless we get bought out in the next 24 hours, it's over. - A Lehman Bros. employee, overheard outside Manhattan headquarters

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Financial Crisis • bailout • Wall Street • Nancy Pelosi • Lehman Brothers • Bank of America • credit market chaos


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