Snappy newsletters. Simple Facebook sharing. Spirited comments. Sweet features are waiting… GET THEM NOW!

BofA Could Partner With China Fund on Lehman Bid

Bankruptcy remains possibility for firm

By Wesley Oliver, Newser Staff

Posted Sep 12, 2008 12:17 PM CDT

(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.

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)

« Prev« Prev | Next »Next » Slideshow

To report an error on this story, notify our editors.

More Newser Stories

Blankfein to Shareholders: We'll Rebuild Reputation

Goldman Sachs could split up top job today

(NEWSER) - Lloyd Blankfein faced a room full of Goldman Sachs shareholders today and vowed to rebuild the company's reputation and "renew the core principles that has sustained us for 141 years," reports the Wall Street Journal . He promised to set up a business standards committee and address the questions at "the heart of our most fundamental value: how we treat our clients." More»

8 Days That Shook the Financial World

James Stewart on the week that Lehman failed, and meltdown loomed

(NEWSER) - James Stewart’s reconstruction of the 8 nail-biting days, a year ago, in which the federal government stepped in to stop the collapse of the world financial system—published in the New Yorker this week, just as Fed chief Ben Bernanke was declaring the recession officially over—makes riveting, tense reading. “I don’t think I can take another day of this,” one banker says getting out of the Goldman Sachs car on Day 4. “You’re getting out of a Mercedes to go to the New York Federal Reserve,” snaps Bernanke. “You’re not getting out of a Higgins Boat on Omaha Beach.” Not quite, at least. More»

Feds Let Lehman Fail—Then Loaned It $138B Anyway

Paulson & Co. say cash was to 'facilitate orderly wind-down' of trades, but questions persist

(NEWSER) - After refusing to bail out Lehman Brothers, the Federal Reserve funneled $87 billion to a subsidiary through JPMorgan Chase on Sept. 15, then another $51 billion the next day. The feds say they aimed to “facilitate an orderly wind-down” of Lehman’s broker-dealer operations, Andrew Ross Sorkin writes in the New York Times, but their changing explanations, and other issues, continue to muddy the waters. More»

Where Is Wall Street's Leadership in This Mess?

Finance could take steps to mend the crisis of confidence

(NEWSER) - It’s easy to criticize Hank Paulson, writes Steven Pearlstein for the Washington Post—for not predicting the depth and breadth of the crisis as subprime mortgages went sour a year ago, for letting Lehman Brothers fail, or for taking his lead from the UK this weekend. But Paulson and others in the government have shown admirable leadership—"Wall Street, by contrast, has served up a nothing sandwich." More»

New Wall Street: Less Risk, Less Innovation, Lower Pay

Era of investment banks ends

(NEWSER) - When Goldman Sachs and Morgan Stanley ditched the investment banking model, it didn’t just mark the end of an era, it marked the end of Wall Street as we know it, the Wall Street Journal declares in an editorial today. And with investment banks gone, the US financial system will become sturdier, but a lot less innovative. More»

NEWS FROM OUR PARTNERS

What is Newser?

Face it: there's too much news. At Newser, we choose the most thought-provoking and entertaining stories from hundreds of US and international sources and reduce them to a headline, picture, and two paragraphs. And we do it 24/7—you can come back morning, noon, night (and in between) for something new that matters. Read less, know more.

Learn more »

Partnering with: Slate

View Newser on the mobile website

BofA Could Partner With China Fund on Lehman Bid

Bankruptcy remains possibility for firm

OTHER STORIES ON OUR RADAR

private equity • Wall Street • Bank of America • Henry Paulson • shareholders • Bear Stearns • SEC • Lehman Brothers • JC Flowers and Co • China Investment Corp

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Blankfein to Shareholders: We'll Rebuild Reputation

Goldman Sachs could split up top job today

8 Days That Shook the Financial World

James Stewart on the week that Lehman failed, and meltdown loomed

Feds Let Lehman Fail—Then Loaned It $138B Anyway

Paulson & Co. say cash was to 'facilitate orderly wind-down' of trades, but questions persist

Where Is Wall Street's Leadership in This Mess?

Finance could take steps to mend the crisis of confidence

New Wall Street: Less Risk, Less Innovation, Lower Pay

Era of investment banks ends

About Us

Site

Newser By Users

Community

Site Maps

Tools

More News

What is Newser?

BofA Could Partner With China Fund on Lehman Bid

Bankruptcy remains possibility for firm

Bookmark & Share

OTHER STORIES ON OUR RADAR

private equity • Wall Street • Bank of America • Henry Paulson • shareholders • Bear Stearns • SEC • Lehman Brothers • JC Flowers and Co • China Investment Corp

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Blankfein to Shareholders: We'll Rebuild Reputation

Goldman Sachs could split up top job today

8 Days That Shook the Financial World

James Stewart on the week that Lehman failed, and meltdown loomed

Feds Let Lehman Fail—Then Loaned It $138B Anyway

Paulson & Co. say cash was to 'facilitate orderly wind-down' of trades, but questions persist

Where Is Wall Street's Leadership in This Mess?

Finance could take steps to mend the crisis of confidence

New Wall Street: Less Risk, Less Innovation, Lower Pay

Era of investment banks ends

About Us

Site

Newser By Users

Community

Site Maps

Tools

More News

What is Newser?