Beleaguered investment bank Lehman Brothers, which posted a third-quarter loss of $3.9 billion, or $5.92 per share, said it is in “advanced discussions with a number of potential partners” to sell a majority stake in its key investment management division.
The deal includes wealth management firm Neuberger/Berman.
Lehman has been in similar negotiations before that have ultimately fallen through. With the situation there growing dimmer by the minute, they’re going to need to pull something out their hat this time.
The big question is, if they don’t, is the Fed again ready to step in with a Bear Stearns type bailout?