Sep 15, 2008 6:11 pm US/Eastern
Lehman Brothers To File For Chapter 11 Bankruptcy
NEW YORK (CBS4) ―
Last minute efforts to rescue the crippled Lehman Brothers investment
firm failed late Sunday, prompting the company to announce early Monday
morning that it will file for Chapter 11 Bankruptcy when the courts
open Monday. The filing could spell the end of what was once the
nation's 4th largest investment bank.
The company issued its statement after talks with Britain's Barclay's Bank and with US banking giant Bank of America were called off. When no other potential buyers came forward, they company announced the Lehman Brother's holding company would file for bankruptcy.
Lehman Brothers was one the biggest underwriter of mortgage-backed
securities, and has suffered greatly by the sluggish economy and the collapse of the US real estate market.
The company said it plans to file a Chapter 11 petition in the U.S.
Bankruptcy Court for the Southern District of New York. The filing will be by the holding company
and won't include any of its subsidiaries, Lehman Brothers said in its statement.
Lehman Brothers said it it continuing to pursue sale of individual portions of it's operations.
US money managers held talks with
Wall Street executives over the weekend to try
to reach an agreement that would prevent the investment bank
from failing before the financial markets open Monday
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