The Wall Street investment services firm Lehman Brothers filed for Chapter 11 bankruptcy protection the morning of September 15, 2008, after an eleventh-hour deal from Bank of America to buy the company's assets fell through. Bank of America instead bought Merrill Lynch. Facing huge losses due to the subprime mortgage crisis, the future of the 158-year-old institution is in doubt. The company's subsidiaries were not included in the bankruptcy filing and will continue to operate normally.CNN: Lehman Brothers To File For Chapter 11 Bankruptcy (September 15, 2008)
Barclays Buy Up Assets
On September 16, Barclays bank made a deal to buy up certain assets from Lehman Brothers after the bank's collapse. Barclays had previously backed out of a deal to buy the investment bank lock, stock and barrel. Details weren't immediately available although people close to the deal said the assets would relate to Lehman's US broker-dealer operations.Financial Times: Barclays seals Lehman deal(September 16, 2008)
References
Fast Facts
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Lehman Brothers founded in 1850
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Lehman Brothers' failure could cause a "chain reaction" among investment institutionsLA Biz Observed: Bracing for the Big One (September 14, 2008)
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Filed for Chapter 11 bankruptcy
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Subsidiaries Neuberger Berman LLC and Lehman Brothers Asset Management not currently affected by bankruptcyCNN: Lehman Brothers To File For Chapter 11 Bankruptcy (September 15, 2008)
