Lehman Brothers is actively searching for a white knight to buy the bank with the help of the US government after investors rejected chairman Dick Fuld's plan to split Lehman in two, sending its shares down as much as 42%, The Telegraph reports.
Bank of America (BoA), the sprawling retail banking conglomerate which has already rescued mortgage bank Countrywide, was last night seen as the most likely buyer of Lehman as the chances of the bank retaining its 158-year independence dwindled. The Daily Telegraph understands that initial conversations between the two banks - led by Mr Fuld and BoA chairman Ken Lewis - began yesterday afternoon in New York, under the watchful eye of Tim Geithner, head of the Federal Reserve Bank of New York. THE NATIONWIDE IS planning to close five mortgage processing centres with the potential loss of...
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