Lehman files for bankruptcy protection

Lehman Brothers, which
owns an investment bank, a fund management business and a $US30bn (?15bn)
portfolio of real estate assets, has filed for bankruptcy protection after Bank
of America and Barclays walked away as possible buyers of the 158-year old Wall
Street bank.

Henry Paulson, US Treasury Secretary, and Tim Geithner, president of the New
York Federal Reserve Bank, had convened an emergency meeting in New York on
Friday evening to try to convince other banks to bail out Lehman, The

‘The board of directors … authorised the filing of the Chapter 11 petition
in order to protect its assets and maximise value,’ Lehman said today.

The bank said its customers would be able to continue to use their accounts
normally and it will take a series of actions today to enable it to continue
managing its operations, including paying staff wages.

Further reading:

KKR favourite in bid for Lehman Bros

The Times story

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