Two Lehman Brothers Units Need Capital to Avoid Failing Lehman Brothers Holdings, the formerly great Wall Street firm that went bankrupt at the height of the financial crisis, now says it will have to pour hundreds of millions of dollars in capital into two of its struggling units if it is to prevent them from undergoing failures that could cost the investment bank billions, CNBC reports, according to court documents.

Meanwhile, the Financial Crisis Inquiry Commission continues to piece together the events that led up to the financial industry meltdown. On Wednesday, it heard testimony from former Lehman Chairman and CEO Richard Fuld, who blamed the government for refusing to rescue the investment bank, even though it rescued many other financial institutions later, and for mandating that the firm file for bankruptcy. Lehman filed for Chapter 11 protection on Sept. 15, 2008, the largest such filing in history. Today, the company's difficulties continue.

The two struggling Lehman units are Aurora Bank FSB, formerly known as Lehman Brothers Bank, and Woodlands Commercial Bank. Both are suffering under restrictions from regulators that have limited their ability to raise capital, complicating Lehman's efforts to sell them.

In a filing with a U.S. bankruptcy court on Wednesday, Lehman said it was faced with a choice of either allowing the units to fail, which would result in estimated losses of between $1.2 billion and $3.6 billion, or injecting capital into their balance sheets to recover significant value for its creditors.

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They should just go out of business. They can't mamage my money if they can't manage their own.

September 03 2010 at 1:14 AM Report abuse rate up rate down Reply

let them fail....stop the bailouts....that's just rewarding failure....and punishing success!

September 02 2010 at 5:46 PM Report abuse +1 rate up rate down Reply

So let the banks fail! They deserve it. No bailout!

September 02 2010 at 5:05 PM Report abuse +1 rate up rate down Reply

Let all the mis managed banks fail, just like any other mis managed business. They don't loan money but give themself exorbant salieries and bonuse's for bank rupting there companys.If they applyied for a loan at there own bank they would be turned down by the standards they require of us when we go for loan. They gambled and lost, took risk, if they would of won they wouldn't give us any of it but they lost and want us the american tax payer to bail them out. Remeber how bankes act and treat the public. Arrogant Yuppies who lack common sense. They deserve to be unemployed who want to keep Mnagers who bank ruped there own companys and pay them high saleries and bonuses for what. A small struggling busness man has more management skill and sesne than these a couple years out of busness school hot shots. Every one takes the same course in Business Schools and follows the same trends they teach in these colleges, Juggle papers and numbers, make risky gambles with others money and if it fails buy some politicans with donations to get at the tax payiers money. Just like when someone applys for a grant, you get the grant and have to make a campain contrubution after you get the grant money, a kick back and if you pay and play along you get the follow on grants. Politics as usual of course. A real arriorgant classy bunch or low lifes, ethics and charticer, They don't know what the words mean, that applys to the suckers they use and take. The public knows and see's we are not all stupid and blind, follow the money. Make something or produce something for a profit , why when you can cook the books and bribe polictains to get at the tax payers money. Heck it's indias and China's money they loaned us. Great bunch of high class arriorgant clueless looser managers in all thiis. Want to creat Jobs for american tax payers the politicans are suppose to work for and care about ,Collect import Tarrif, end NAFTA and TAFFTA and the factorys and job will return and America will grow strong. America for Americans first and formost always, who do our politicans work for big business thats who buys them.

September 02 2010 at 12:19 PM Report abuse +1 rate up rate down Reply