Lehman Brothers (LEH) is thinking about selling its asset management group Neuberger Berman, valued at approximately $8 billion, says CNBC. The spin-off would raise lots of needed capital, but credit analysts suggest that because the unit is so profitable and is such a reliable source of income that offloading it might negatively affect Lehman’s credit ratings. CNBC:
Such a move could also come at a big cost for Lehman, the smallest of the major Wall Street investment banks, as it removes a very profitable part of the business and would make it difficult to be competitive as a stand alone company. Ratings agencies may also have a problem with Lehman spinning off even a chunk of Neuberger because it provides a stable source of revenue — a factor that may cause the brokerage to have second thoughts…
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