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| Version 3 | Version 4 |
|---|---|
| Talks over sale of Lehman resume | Talks over sale of Lehman resume |
| (20 minutes later) | |
| Negotiations have restarted to find a buyer for troubled US investment bank Lehman Brothers, before a Sunday evening deadline. | Negotiations have restarted to find a buyer for troubled US investment bank Lehman Brothers, before a Sunday evening deadline. |
| Bank of America and UK lender Barclays are said to be the main candidates to buy all or part of the company. | Bank of America and UK lender Barclays are said to be the main candidates to buy all or part of the company. |
| Lehman is up for sale after it reported a $3.9bn (£2.2bn) quarterly loss last week amid concerns over its long term financial viability. | Lehman is up for sale after it reported a $3.9bn (£2.2bn) quarterly loss last week amid concerns over its long term financial viability. |
| The firm's share price has plummeted as fears over its future have mounted. | The firm's share price has plummeted as fears over its future have mounted. |
| 'Rescue package' | 'Rescue package' |
| The talks to sell Lehman are being led by senior officials from the US Treasury Department and the Federal Reserve. | The talks to sell Lehman are being led by senior officials from the US Treasury Department and the Federal Reserve. |
| It is understood that the US government wishes to arrange a bailout package under which other US investment banks - such as Citigroup, JPMorgan Chase, Morgan Stanley and Goldman Sachs - would contribute funds to a rescue deal which would see Lehman's balance sheet cleaned up before its sale. | It is understood that the US government wishes to arrange a bailout package under which other US investment banks - such as Citigroup, JPMorgan Chase, Morgan Stanley and Goldman Sachs - would contribute funds to a rescue deal which would see Lehman's balance sheet cleaned up before its sale. |
| Although this is expected to cost the banks many millions, the alternative would likely be a sharp fall in their share prices if Lehman was to fail. | Although this is expected to cost the banks many millions, the alternative would likely be a sharp fall in their share prices if Lehman was to fail. |
| A number of sources report that US Treasury Secretary Henry Paulson is determined that no tax payers' money will be used to help Lehman. | A number of sources report that US Treasury Secretary Henry Paulson is determined that no tax payers' money will be used to help Lehman. |
| 'Difficult decision' | |
| Former Federal Reserve boss Alan Greenspan said the US government faces "very difficult decisions" over Lehman if it cannot secure a rescue deal that does not involve public funds. | |
| " "They [will then] have to make a very difficult decision as to whether or not they allow it to liquidate or they support it," he said. | |
| Yet Mr Greenspan said it would be "unsustainable" for the government to bail-out every US bank that got itself into difficulty. | |
| Predicting that Lehman would not be the last to require rescuing, Mr Greenspan added that this would not necessarily pose a problem. | |
| "The ordinary course of financial change has winners and losers," he said. | |
| Bad mortgage woes | |
| Lehman could be sold off as one company, or else broken up into parts and sold separately. | Lehman could be sold off as one company, or else broken up into parts and sold separately. |
| While the firm got itself into financial difficulty due to extensive bad mortgage debts, its fund management business is in relatively good shape, analysts say. | While the firm got itself into financial difficulty due to extensive bad mortgage debts, its fund management business is in relatively good shape, analysts say. |
| Neither Bank of America or Barclays have made any comment. | Neither Bank of America or Barclays have made any comment. |
| Lehman's shares lost 80% of their value last week, and its quarterly loss was the largest in its history. | Lehman's shares lost 80% of their value last week, and its quarterly loss was the largest in its history. |
| The firm is the fourth-largest US investment bank. | The firm is the fourth-largest US investment bank. |
| Concerns over the fate of Lehman follow the bail-out last weekend of mortgage giants Freddie Mac and Fannie Mae. | Concerns over the fate of Lehman follow the bail-out last weekend 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. | The lenders were thrown into financial difficulty after the collapse of the US sub-prime mortgage market. |