RBC considered buying Lehman Brothers in July, but “decided against it because it had doubts about Lehman’s ability to shore up its balance sheet in the wake of the credit crisis.” In addition to concerns about Lehman assets, RBC was worried “about what we would have to promise the Lehman people” according an RBC exec.
The story also questions the company’s ability to close a deal with the Korean Development Bank, citing a large shareholder who says the deal should be further along by now. KDB has tried investing in the bank twice before, once in June and once in early August. In August, Fuld may have “over-negotiated,” scaring away the Koreans.
In other Lehman news, the firm has restructured the leadership of its European and Asian divisions. The CEO of those divisions, Jeremy Issacs, is stepping down, as is the COO for Europe and the Mid East, and Andrew Morton head of fixed income is on his way out, too.
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