Barclays was reported out earlier. Now Bank of America. So unless there's some government deal that saves the day all bets are off. Lehman Brothers may be headed for bankruptcy. The Wall Street Journal noted in an earlier report that the firm had hired Weil Gotschal as its bankruptcy counsel. Here are the headlines as they appear on Bloomberg:
5) BN 15:45 *BANK OF AMERICA PULLS OUT, PERSON BRIEFED ON LEHMAN TALKS SAYS
6) BN 15:45 *BANK OF AMERICA SAID TO WITHDRAW FROM TALKS TO BUY LEHMAN
7) BN 15:44 *BANK OF AMERICA PULLS OUT, PERSON BRIEFED ON LEHMAN TALKS SAYS
8) BN 15:44 *BANK OF AMERICA SAID TO WITHDRAW FROM TALKS TO BUY LEHMAN
More news:
Bank of America Said to Walk Away From Lehman Talks - Bloomberg
Bank of America Corp. abandoned talks to buy Lehman Brothers Holdings Inc., according to a person with knowledge of the matter, less than three hours after Barclays Plc said it wouldn't buy the faltering investment bank.
Bank of America, the biggest U.S. consumer bank, and Barclays, the U.K.'s third-largest lender, had been among the leading candidates to acquire all or parts of New York-based Lehman. The Wall Street Journal reported that Bank of America had entered into merger talks with Merrill Lynch & Co., citing unidentified people.....
Barclays Abandons Talks to Buy Lehman Over Guarantees - Bloomberg
Barclays Plc, the U.K.'s third- biggest bank, said it abandoned talks to buy Lehman Brothers Holdings Inc., contending it couldn't obtain guarantees to protect against potential losses at the U.S. securities firm.
Barclays, which had emerged as a leading candidate to acquire all or parts of Lehman, pulled out amid a third day of emergency negotiations led by the U.S. Treasury and Federal Reserve, Leigh Bruce, a spokesman for the London-based bank, said in a phone interview today.
Lehman Brothers teeters on verge of collapse as Barclays pulls out - Daily Telegraph
Global investment bank Lehman Brothers is teetering on the verge of collapse after Barclays pulled out of an 11th-hour rescue.
The departure of Barclays left US Treasury Secretary Hank Paulson and Tim Geithner, the head of the Federal Reserve Bank of New York, spearheading desperate last-ditch attempts to put in place some form of a workable rescue package.
Lehman is understood to have appointed Wall Street law firm Weil Gotshal & Manges to work on preparing a potential bankruptcy filing in the event that a solution can not be found.
<p><p><p>HTML clipboard</p></p></p> If bankruptcy is the only viable option, the firm's brokerage units will enter into what is known as a "Chapter Seven" liquidation, which involves a trustee, who is appointed by the court, liquidating the firm's assets and attempting to give customers some of their money back.
ISDA Statement on Lehman Brothers Bankruptcy Trades: Full Text - Bloomberg
Following is a statement today from the International Swaps and Derivatives Association:
``ISDA confirms a netting trading session will take place between 2 pm and 4 pm New York time for OTC derivatives. Product classes involved are credit, equity, rates, FX and commodity derivatives. The purpose of this session is to reduce risk associated with a potential Lehman Brothers Holding Inc. bankruptcy filing. Trades are contingent on a bankruptcy filing at or before 11:59 pm New York time, Sunday, September 14, 2008. If there is no filing, the trades cease to exist. These trades are subject to a protocol which is being distributed by ISDA (International Swaps and Derivatives Association). Traders should execute the protocol and return to ISDA.''
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