Hopes of a lifesaving deal for Lehman Brothers Inc.
mounted Friday morning amid reports that several banks are examining the
books of the fourth-largest U.S. investment bank. On Thursday, the plunge in the bank's shares continued after a ratings
agency report questioned the firm's ability to retain its A debt rating
and maintain its independence. But then overnight, reports surfaced of
talks taking place with the cooperation -- though not the financial
backing -- of the Treasury and the Federal Reserve.
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Lehman's shares rose about 4% to $4.40 in premarket trading in New York on rumors that the bank would put out a statement before the New York Stock Exchange opened. The bank's stock began the week at $17.53.
Press reports Friday morning cited analysts as saying that Bank of America Corp. is emerging as the most likely buyer for Lehman Brothers. Charlotte, N.C.-based Bank of America and J.P. Morgan Chase & Co. -- which scooped up Bear Stearns & Cos. in March -- would have bulked up their investment banking businesses. Citigroup Inc. and Merrill Lynch & Co. appear damaged but functioning after taking massive writed-owns while Goldman, Sachs & Co. and Morgan Stanley are weathering the storm. -
Peter Moreira and Vipal MongaSee full story on TheDeal.com
