Business NEWS

Lehman to Auction Two Bank Units: FSB and Woodlands Commercial Bank

By Amarendra Bhushan for CEOWORLD Magazine Updated:March 17, 2009

Lehman Brothers is in the early stages of a process to auction a thrift and an industrial bank it owns, Reuters reports, citing a source familiar with the matter.

The sale of Lehman Brothers Bank FSB, a Delaware thrift, and Woodlands Commercial Bank, a Utah industrial bank, is being handled by investment bank Lazard, according to the source, Reuters reports.

Any transaction would have to go through the U.S. bankruptcy court process. Lehman filed for bankruptcy on Sept. 15, 2008, in the largest U.S. bankruptcy filing in history.

A Lehman spokeswoman said the company was selling all assets as part of Lehman’s wind-down in bankruptcy, Reuters reports. Lazard declined to comment.

Reuters reports that in February a U.S. bankruptcy judge allowed Lehman to pump cash into the two banks to avoid a seizure by regulators.

Lehman Bothers Bank FSB was a centerpiece of the brokerage’s mortgage loan origination, purchasing and servicing business. Lehman reported equity of about $467 million and total assets of about $6.5 billion in the bank at the end of 2008, according to Reuters.

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Tagged with: FSB, Lehman Brothers, Utah industrial bank, Woodlands Commercial Bank

mortgagemodification

Here comes the end!
He is not allowed to outlive this!

adjustmyloan

Sounds like another major bank trying to survive in todays financial crisis. We are glad we don't have a Lehman Brothers account!

Cheers,

Adjust My Loan