Another potential suitor (Barclay's) decides Lehman is too ugly to wed.....

[marmar]

from MarketWatch:


U.K.'s Barclays balks in Lehman talks
Unwilling to do deal without government guarantees
By MarketWatch


WASHINGTON (MarketWatch) -- Barclays PLC reportedly has withdrawn, at least temporarily, from talks to acquire a chunk of Lehman Brothers in the absence of U.S. government guarantees to limit the U.K. firm's potential losses.

The U.K. banking powerhouse emerged over the weekend as one of two leading contenders in the bidding for Lehman, along with Bank of America, The Wall Street Journal reported.

Yet the firms have been seeking financial support from the U.S. in case of future losses in the Lehman business. So far the government has been reluctant to step in with direct support, people familiar with the situation told the Journal.

Absent a guarantee, Barclays withdrew from talks Sunday afternoon, though the Journal said the firm could return to the negotiating table. Talks continued at the New York Federal Reserve Bank, but the situation was fast changing and there were no assurances a deal would be reached before global markets opened Monday.

The Federal Reserve, Treasury officials and banking executives have been meeting since Friday in hopes of engineering a plan for a private-sector rescue of Lehman before the end of the weekend. Their goal: to forestall the collapse of the investment firm and to keep weakness among financial firms from spreading.

New York-based Lehman, one of the nation's oldest investment banks, is on the verge of financial failure after billions of dollars in losses in its mortgage business. Its problems were triggered by the end of a boom in the U.S. housing market. ......(more)

The complete piece is at: http://www.marketwatch.com/news/story/uks-barclays-balking-lehman-negotiations/story.aspx?guid=%7B04C41801%2DF3E0%2D4C1B%2D8BAA%2D21EAD9F5E0C7%7D

[susu369]

1. Tick, tick, tick

:nuke:

This scenario is scary.

Oh nevermind, I see where McPain and wife are at a NASCAR race. Obviously, there is no problem.