NEW YORK (Reuters) - Lehman Brothers Holdings Inc filed for bankruptcy preservation after troublesome to fund too many touchy assets with too dwarf capital, attractive the largest U.S. bankruptcy and the highest-profile statistic of the worldwide credit crisis. Lehman is expected to convey most of its businesses, including its broker-dealer operations and its Neuberger Berman talent brass unit.
Those units did not column for bankruptcy safe keeping and are operating, but customers are often jittery about trading with a associates whose parent is bankrupt, so selling the units before too many customers retreat is crucial. "Much of (Lehman's) advantage value at the end of the daylight is tied up in its credibility, and that takes a significant hit inopportune in a bankruptcy case," said Jack Williams, abiding intellectual at the American Bankruptcy Institute and a professor at Georgia State College of Law. A jumble sale of the investment handling division, which includes Neuberger Berman, is fixed to being announced, a being frequent with the matter said. Bain Capital, Hellman & Friedman, and Clayton, Dubilier and Rice have placed bids, the soul said.
Lehman terminal week had planned to over a stick in the business, but now it is selling the sound unit. But there are also assets, such as Lehman commercial mortgage bonds, which will be more finicky to trade in and will as likely as not be sold at a cut-rate price, analysts said. That in shift might push other banks to mark down the value of their assets, c pressuring them to moot capital, wrote Meredith Whitney, analyst at Oppenheimer. "We contemplate the pecuniary markets to be under unprecedented try over the next several days," Whitney wrote recent Sunday.
That strain was apparent on Monday. Major U.S. sell market indices turned in their worst period since September 2001, and the Standard & Poor's 500 flatten to its lowest true since October 2005.
Lehman is set to run the S&P 500 marker after Tuesday's market close.
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