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To: ~digs who wrote (5635)	9/14/2008 3:17:45 PM
From: Bucky Katt	Respond to of 7944

No US warranty? The situation was rapidly evolving, and it's possible Barclays or another bidder would emerge to save Lehman before markets opened Monday. But with the government balking at putting any taxpayer money at risk for Lehman, the likelihood of a transaction was dimming. That would leave an orderly liquidation as the most likely scenario, a dramatic outcome for a once-powerful firm. According to people familiar with the situation, a stumbling block is the request that Barclays obtain shareholder approval before it agrees to cover Lehman's contracts with other financial firms. But organizing a shareholder vote would take days if not weeks. U.S. regulators are likely to have known this, raising a question about why this provision emerged late in the talks. The main stumbling block for any Barclays deal is a reluctance by U.S. regulators to financially back an acquisition or the creation of a so-called "bad bank" to wind down Lehman's assets. Some people involved in the discussions say Barclays concerns could be addressed, and this was high-stakes brinksmanship. The British bank could still return and with the pressure building on the government to find a solution, a threat to not return to the talks could help Barclays' stance. Bank of America Corp., the other leading bidder on Friday, had indicated by Sunday morning that it wasn't interested in a transaction without government support.

To: ~digs who wrote (5635)	9/14/2008 4:48:06 PM
From: Bucky Katt	Respond to of 7944

AIG news> American International Group plans to disclose a comprehensive restructuring by early Monday morning that is likely to include the disposal of major assets including its aircraft-leasing business and other holdings.

To: ~digs who wrote (5635)	9/14/2008 4:56:31 PM
From: Bucky Katt	Respond to of 7944

Bank of America and Merrill Lynch are in merger discussions. The talks come amid a Wall Street scramble to sort out a potential liquidation of Lehman Brothers. Much remains uncertain and conditions were fluid.

To: ~digs who wrote (5635)	9/14/2008 6:49:06 PM
From: Bucky Katt	Read Replies (1) \| Respond to of 7944

Chapter 7 soon? A top investment banking official says U.S. and foreign banks are planning major steps to inoculate the global financial system as a bankruptcy filing by Lehman Brothers appeared likely. The official said Sunday the banks would create a pool of money up to $50 billion to lend troubled financial companies. And officials at the U.S. Treasury and the Federal Reserve are expected to say they are prepared to make additional loans. The plan comes as top government officials and Wall Street executives hold marathon meetings about Lehman's future. The official says the Fed and Treasury are pushing Bank of America to buy Merrill Lynch. The person, with direct knowledge of the talks, was not authorized to speak publicly because the discussions were ongoing.