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September 15, 2008 at 12:03 PM
Lehman Brothers Holdings Inc. says its broker-dealer division is not part of the Chapter 11 bankruptcy it filed Monday.
The broker-dealer division includes Neuberger Berman L.L.C. Lehman, New York, has been seeking a buyer for the division for several months.
Lehman will continue to explore the sale of Neuberger Berman and is also in advanced talks with a number of parties that could buy the Lehman asset management unit, Lehman says.
Neuberger Berman and the asset management unit “will continue to conduct business as usual and will not be subject to the bankruptcy case of its parent, and its portfolio management, research and operating functions remain intact,” Lehman says in a statement. “In addition, fully paid securities of customers of Neuberger Berman are segregated from the assets of Lehman Brothers and are not subject to the claims of Lehman Brothers Holdings creditors.”
The U.S. Securities and Exchange Commission also issued a statement seeking to reassure clients of Neuberger Berman.
The SEC says it will continue to require the broker-dealer to “conduct its affairs so as to minimize the effect of the holding company’s bankruptcy on customers, and that it ensure access to customer cash and securities.”
The Wall Street Journal and other publications are reporting that Barclays Bank P.L.C., London, is likely to reach an agreement to buy a large part of Lehman Brothers, including Neuberger Berman and its asset management unit.
Meanwhile, the Securities Investor Protection Corp., which maintains a reserve fund to help investors at failed brokerage firms, says it has not started a liquidation proceeding against the Lehman Brothers broker-dealer unit and does not anticipate doing so.
