Shares in US investment bank Lehman Brothers have plunged 30% on fears the the group will not be able to raise the funds it needs to cover losses.
Lehman has been seeking ways to raise $6bn after sustaining credit crunch-related write-downs and losses.
There are fears that a potential investment from Korea Development Bank has fallen through.
Wall Street sent the firm's stock down to $8. The bank's share South Korea in talks with Lehman ...
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Lehman, the fourth-largest US investment bank, had hoped to secure a deal with the Korean fund before announcing third-quarter earnings on 18 September.
Lehman and KDB are thought to have been in talks for two months about the prospect of the state-run Korean bank taking a stake in Lehman.
Overseas interest
Lehman has been linked with a number of overseas financial firms as it tries to shore up its finances.
Recent reports have suggested that Japanese brokers Nomura Holdings are considering buying a stake in Lehman.
Other financial firms from China, Qatar and Abu Dhabi have also been linked to Lehman.
The bank is also said to be meeting with potential buyers of its Neuberger Berman asset management unit to raise funds.
(BBC)
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