Barclays Pulls Out From Lehman Deal

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Barclays has walked away from the negotiations on the fate of beleaguered Lehman Brothers, balking at the government's refusal to provide guarantees that would shield Barclays from Lehman losses. Bank of America continues in talks, sources say.
We hear that Lehman CEO Dick Fuld is complicating negotiations, saying at first thatthe deals being worked out at the New York Federal Reserve would not benefit Lehman shareholders. He had threatened to pull Lehman out of talks and keep his investment bank independent. Many believe that survival as an independent entity is simply not feasible for Lehman, however. They predict that if a buyer or buyers for all or a large part of Lehman cannot be found the firm will have to be liquidated.
Today Fuld seems to have largely given up on autonomy for Lehman. He is said to favor a deal with Barclays in the lead and a government guarantee supporting the transaction. This position may risk alienating Bank of America.
Please keep in mind that the situation is very fluid, with deals apparently being reached and then collapsing.
Lehman Heads Toward Brink as Barclays Ends Talks [New York Times]
Barclays Ends Talks to Buy Lehman; BofA Still Involved [CNBC]
Barclays Walks from Lehman Deal [Wall Street Journal]

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