The money management subsidiaries of Lehman Brothers Holdings — Lehman Brothers Asset Management and Neuberger Berman — as well as the firm’s broker-dealer units will continue normal operations despite the bankruptcy filing of their parent.
Lehman Brothers Holdings today filed for Chapter 11 bankruptcy protection, according to court documents. The move is designed “to protect its assets and maximize value,” and executives there will work to continue normal operations, according to a news release from the investment bank.
Lehman Brothers executives are in “advanced discussions with a number of potential purchasers to sell its investment management division.” No firms were named, but among the five private equity firms sources said submitted bids were Hellman & Friedman, Clayton Dubilier & Rice and Bain Capital.
The firm also said it is exploring the possible sale of its broker-dealer operations.
With $613 billion in debt, Lehman tops the bankruptcy of WorldCom in 2002. It is the largest failure of a Wall Street firm since Drexel Burnham Lambert in 1990.
