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December 2, 2008 8:26:37 PM CST

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BofA Could Partner With China Fund on Lehman Bid

Posted Sep 12, 08 12:17 PM CDT in Business 

(Newser) – Bank of America could partner with financial investor JC Flowers and a Chinese sovereign wealth fund on a bid to rescue Lehman Brothers, the Financial Times reports. The hobbled investment bank had resisted selling itself, but is now eagerly seeking suitors before the last of its goodwill on Wall Street dries up.

“The only question now is what price,” said an insider. Treasury Secretary Henry Paulson has left no doubt that Washington will not inject any government funds into a Lehman sale, which could create losses for debt holders. The firm’s downfall may also cause trouble for the Securities and Exchange Commission, which many blame for allowing the bank’s finances to spiral out of control.

Source Financial Times (UK)

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A forced sale of Lehman Brothers at a fire sale price appears to be the most likely option in the wake of the huge drop in Lehman's share price over the last few days.   (Getty Images)
At least since June, Dick Fuld, Lehman's embattled CEO, has been refusing various deals that could have saved his firm, arguing that the price on offer was too low.   (Getty Images)
A consortium led by Bank of America is among those examining a rescue of Lehman, which is racing to find a buyer.   (Getty Images)
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Wall Street • Henry Paulson • Lehman Brothers • Bear Stearns • private equity • Bank of America • shareholders • Securities and Exchange Commission • JC Flowers and Co • China Investment Corp


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