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Lehman Brothers posts $2.8bn loss ... a buyer for troubled US investment bank Lehman Brothers, before a Sunday evening deadline.
Bank of America is the main candidate to buy Lehman, but UK lender Barclays is also said to be interested.
Lehman is up for sale after it reported a $3.9bn (Ј2.2bn) quarterly loss last week amid concerns over its long term financial viability.
The firm's share price has plummeted as fears over its future have mounted.
'Rescue package'
The talks to sell Lehman are being led by senior officials from the US Treasury Department and the Federal Reserve.
It is understood that the US government wishes to arrange a bailout package under which other US investment banks - such as Citigroup, JPMorgan Chase, Morgan Stanley and Goldman Sachs - would contribute funds to a rescue which would see Lehman's balance sheet cleaned up before its sale.
A number of sources report that US Treasury Secretary Henry Paulson is determined that no tax payers' money will be used to help Lehman.
Lehman could be sold off as one company, or else broken up into parts and sold separately.
While the firm got itself into financial difficulty due to extensive bad mortgage debts, its fund management business is in relatively good shape, analysts say.
Mortgage bail-out
Lehman's shares lost 80% of their value last week, and its quarterly loss was the largest in its history.
The firm is the fourth-largest US investment bank.
Concerns over the fate of Lehman follow the bail-out last weekend of mortgage giants Freddie Mac and Fannie Mae.
The lenders were thrown into financial difficulty after the collapse of the US sub-prime mortgage market.
(BBC)
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