In a move similar to what Merrill Lynch has done, Lehman Brothers' CEO Dick Fuld is trying to shop tens of billions of dollars in mortgage securities on its balance sheet in order to reduce leverage at the embattled investment bank, The Post has learned.
Lehman is engaged in talks with prospective buyers about offloading some $30 billion in commercial mortgage assets and other hard-to-value securities that have dogged its balance sheet for months and ultimately resulted in the demotion of Chief Financial Officer Erin Callan and President Joseph Gregory.
The sales talks, which are described as preliminary, involve Lehman selling some of its risky assets to a domestic or foreign entity and perhaps providing funding for the sale.
http://www.nypost.com/seven/08012008/business/lehman_shopping_mortgage_securities_122558.htm
Now that will be one ugly sale!
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