Lehman Brothers Holdings Inc. Chief Executive Officer Richard Fuld, worried that the U.S. government won’t provide the funding that enabled Bear Stearns Cos. to sell itself and avoid bankruptcy, is seeking buyers for the investment bank, Bloomberg news reported today.
According to the report, Fuld, "who built Lehman into the biggest U.S. underwriter of mortgage securities during his four decades at the firm, was pushed toward a forced sale after talks about a cash infusion from Korea Development Bank ended, sparking a drop of as much as 74 percent in the firm’s market value during the past four days."
The New York-based investment bank is reeling from $5.6 billion in third-quarter write-downs on devalued commercial and residential real estate assets after reporting a preliminary net loss of approximately $3.9 billion in the third quarter (ending Aug. 31, 2008) — the largest loss in its 158-year history, Bloomberg reported.
According to the report, Bank of America by itself or in a partnership with Barclays Plc and private equity firms would be the most likely purchaser.
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