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THURSDAY, NOVEMBER 26, 2009
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BofA Could Partner With China Fund on Lehman Bid

Bankruptcy remains possibility for firm

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(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.
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.
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.
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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GLOSSIES

8 Days That Shook the Financial World

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

Sep 16, 09 9:35 PM CDT
(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... More »

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ANALYSIS

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

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

Dec 16, 08 9:20 AM CST
(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... More »

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OPINION

Where Is Wall Street's Leadership in This Mess?

Finance could take steps to mend the crisis of confidence

Oct 14, 08 12:53 PM CDT
(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... More »

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34 Stories


Paulson 'adamant' no US funds to bail out Lehman
Reuters

But the feds are helping Lehman find buyers
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What's in it for Bank of America?
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private equity • Wall Street • Bank of America • Henry Paulson • shareholders • Bear Stearns • SEC • Lehman Brothers • JC Flowers and Co • China Investment Corp

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