Lehman Brothers is preparing to split into two separately listed companies, as rescue talks between the beleaguered $11bn (£6.2bn) investment bank and the Korea Development Bank appear to be running out of time.
The group’s chief executive, Richard Fuld, has drawn up plans to create a “good bank” and a “bad bank” which could be unveiled with the group’s third quarter results, due to be published with in the next two weeks.
Fuld’s plans would see the bank’s $32bn portfolio of toxic commercial mortgages siphoned off into a new company, support with $24bn of debt and $8bn of new equity.
The Sunday Times 07/09/08 page 3
