Page last updated at 12:32 GMT, Monday, 8 September 2008 13:32 UK

Lehman reshuffles top management

Lehman Brothers office
Lehman has suffered heavy losses from the credit crunch

US investment bank Lehman Brothers has announced a shake-up of its management, as speculation about overseas interest in the firm intensifies.

Eric Felder and Hyung Soon Lee have been named global co-heads of fixed income and there have been a slew of other appointments.

Recent reports have suggested that Japanese brokers Nomura Holdings are considering buying a stake in Lehman.

Korea Development Bank (KDB) has confirmed its interest in a stake.

Last Tuesday, KDB's governor Min Euoo-sung said the state-owned bank was in talks with Lehman with the view to making an investment and injecting capital.

He did not say how big the stake would be, but reports suggest the investment could be in the region of $5.3bn (3bn) for 25% of the company.


The new global co-head Mr Lee had been head of capital markets for Asia, while Mr Felder oversaw the global credit products and municipal finance division.

As well as Mr Felder and Mr Lee's appointments, Riccardo Banchetti and Christian Meissner have been appointed co-chief executive officers of Europe and the Middle East and Jeremy Isaacs retires as chief executive officer for Europe, the Middle East and Asia-Pacific at the end of the year.

The shake-up in key positions is the third in four months and has been viewed as an attempt to draw a line under the bank's recent poor performance.

Shares in Lehman Brothers, the US's fourth largest investment bank, have plummeted more than 75% this year.

It has also announced $7bn in credit crunch-related write-downs and losses since the turmoil began in the global markets last year.

It is expected to announce further losses of up to $4bn when it releases its third quarter results, likely this week.

Foreign interest

Lehman has been linked with a number of overseas financial firms as it tries to shore up its finances.

However, Jun Kwang-woo, chairman of South Korea's financial regulator, has warned KDB to take a cautious approach in dealing with the US bank.

KDB should be "very prudent in its approach to acquiring Lehman given the condition of financial markets at home and abroad," warned Mr Kwang-woo.

It is thought KDB is currently looking for private bank partners with whom to establish a consortium for a deal with Lehman.

A weekend report in Japan newspaper Yomiuri Shimbun suggested the country's largest brokerage group, Nomura Holdings, could also be interested in a deal though the firm has not confirmed this.

Other financial firms from China, Qatar and Abu Dhabi have also been linked to Lehman.

The BBC is not responsible for the content of external internet sites

Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit


Sign in

BBC navigation

Copyright © 2019 BBC. The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.

Americas Africa Europe Middle East South Asia Asia Pacific