Lehman Brothers is reportedly now looking for a buyer after funding deals fell through earlier this week.
On Wednesday the investment bank rushed out results showing $4 billion (£2.3 billion) loss for the third quarter. Its share price had already fallen 45 per cent in one day as a funding deal with the Korea Development Bank fell through.
The loss was driven by write-downs on real estate investments.
Possible buyers rumoured to be interested include Bank of America and Barclays, along with some major private equity names.
Lehman staff and US government officials from the Treasury Department and the Federal Reserve are now in talks – with the aim of securing a deal by next week.
Although private equity buyers could be around, it is thought a deal to keep Lehmans public is preferred.
Yesterday the Lehman share price fell 41.79 per cent on Wall Street to $4.22. This followed a 45 per cent drop on Tuesday.
The 52-week high for the Wall Street bank's share price – recorded last year - is $67.73.
It is hoped a similar deal to that of weekend fire sale of Bear Stearns to JP Morgan Chase in March.
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