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| Version 4 | Version 5 |
|---|---|
| Lehman scrambles to find a buyer | Lehman scrambles to find a buyer |
| (about 4 hours later) | |
| Executives at Lehman Brothers are racing to meet a deadline of Sunday night to find a new owner for the troubled bank, the BBC has learned. | Executives at Lehman Brothers are racing to meet a deadline of Sunday night to find a new owner for the troubled bank, the BBC has learned. |
| The BBC's business editor Robert Peston says that Bank of America is the main candidate to buy Lehman but Barclays may also play a role in the rescue. | The BBC's business editor Robert Peston says that Bank of America is the main candidate to buy Lehman but Barclays may also play a role in the rescue. |
| Bankers close to Lehman warned that failure to conclude a deal by then would be devastating for firm. | Bankers close to Lehman warned that failure to conclude a deal by then would be devastating for firm. |
| Investors sent Lehman shares tumbling again in New York trading. | Investors sent Lehman shares tumbling again in New York trading. |
| "If a solution isn't found by the time Asia opens for business on Monday, well the consequences would be disastrous," a senior banker told the BBC. | "If a solution isn't found by the time Asia opens for business on Monday, well the consequences would be disastrous," a senior banker told the BBC. |
| Our correspondent says that the US Treasury is working assiduously behind the scenes to facilitate a takeover of the bank. | Our correspondent says that the US Treasury is working assiduously behind the scenes to facilitate a takeover of the bank. |
| He says that Barclays is taking part in the negotiations to buy all or part of Lehman but a US solution, led by Bank of America, is still the most likely outcome. | He says that Barclays is taking part in the negotiations to buy all or part of Lehman but a US solution, led by Bank of America, is still the most likely outcome. |
| Lehman's fund management business, which is in relatively good shape, may be sold separately, he adds. | Lehman's fund management business, which is in relatively good shape, may be sold separately, he adds. |
| Losses mount | Losses mount |
| Lehman announced the biggest loss in its history on Wednesday and investors remain unconvinced by the bank's plans to strengthen its finances. | Lehman announced the biggest loss in its history on Wednesday and investors remain unconvinced by the bank's plans to strengthen its finances. |
| Lehman shares fell 13.5% to close at $3.65 in New York after falling around 40% on Thursday. | |
| Lehman will be lucky to end the day as an independent bank Robert Peston, BBC business editor Read Robert's blog | Lehman will be lucky to end the day as an independent bank Robert Peston, BBC business editor Read Robert's blog |
| The company has lost 80% of its market value since Monday. Six months ago the stock was trading at $48.65. | The company has lost 80% of its market value since Monday. Six months ago the stock was trading at $48.65. |
| The Financial Times reported that Bank of America is considering a joint bid for Lehman with with private equity firm JC Flowers and China Investment Co, the Chinese sovereign wealth fund. | The Financial Times reported that Bank of America is considering a joint bid for Lehman with with private equity firm JC Flowers and China Investment Co, the Chinese sovereign wealth fund. |
| Concerns over the fate of Lehman follow the bail-out on Sunday of mortgage giants Freddie Mac and Fannie Mae. The lenders were thrown into financial difficulty after the collapse of the US sub-prime mortgage market. | Concerns over the fate of Lehman follow the bail-out on Sunday of mortgage giants Freddie Mac and Fannie Mae. The lenders were thrown into financial difficulty after the collapse of the US sub-prime mortgage market. |
| Our correspondent says that Wall Street has lost confidence in Lehman's capacity to survive as an independent entity. | Our correspondent says that Wall Street has lost confidence in Lehman's capacity to survive as an independent entity. |
| But he questions whether any company would take the plunge and take over Lehman without some government support. | But he questions whether any company would take the plunge and take over Lehman without some government support. |
| "The US Treasury may... have to provide some backstop underwriting for Lehman, so that an orderly resolution of Lehman's woes can be achieved," our correspondent says. | "The US Treasury may... have to provide some backstop underwriting for Lehman, so that an orderly resolution of Lehman's woes can be achieved," our correspondent says. |
| "When confidence in a bank erodes, it ebbs at first and then is gone in a great whoosh. Lehman will be lucky to end the day as independent bank." | "When confidence in a bank erodes, it ebbs at first and then is gone in a great whoosh. Lehman will be lucky to end the day as independent bank." |
| White House spokesman Tony Fratto said the US Treasury "is closely monitoring the markets and they stay in contact with market participants". | White House spokesman Tony Fratto said the US Treasury "is closely monitoring the markets and they stay in contact with market participants". |