Business

Lehman may sell mortgage assets to Black Rock
by Zuzana Zelenakova

According to The New York Post website well-known global financial services firm Lehman Brothers Holdings Inc. has found several buyers for it obviously plans to sell about $0 billion in commercial mortgage assets and other securities. Lehman Brothers would like to sell some of the risky assets to domestic or foreign buyer and it is possible that they will provide funding for the sale. Lehman Brothers Holdings Inc. was founded in 1850 as a family company and now it includes some notable subsidiaries such as Lehman Brothers Inc., Neuberger Berman Inc., Aurora Loan Services, Inc., SIB Mortgage Corporation, Lehman Brothers Bank, FSB, and the Crossroads Group. However, the firm has had also some difficulties. In 2007, it shut down its subprime mortgage lending unit BNC Mortgage LLC, which was one of the top 20 subprime producers in 2006 originating over $14 billion in loans. Lehman comment in press release was that “market conditions have necessitated a substantial reduction in its resources and capacity in the subprime space.” The act eliminated 1,200 positions. In June 2008, CBNS first reported that the Lehman Brothers executives met with the officials at Black Rock to negotiate the possible sale. Since then the company´s financial situation only got worse and it has announced massive writedowns, losses and off course the need to raise the capital. According to the financial experts Lehman´s writedown for the third quarter could be approximately $3 billion. Some people close to the company said that it has been considering to sell even a part or all of its subsidiary Neuberger Berman which deals with money management. But so far these are only unconfirmed rumors. The truth is the subsidiary produces steady revenues and if Lehman will sell even a piece of it the firm might very well end up weakened considerably. As far as the potential deal with Black rock is considered nobody knows how that would exactly look.


related story: http://news.yahoo.com/s/nm/20080801/bs_nm/lehman_dc;_ylt=AmKRbwWQ6HrSDP8MxlywybOs0NUE

by Zuzana Zelenakova for PocketNews (http://pocketnews.tv)

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