Hank Paulson works weekends. Our Treasury Secretary is hard at it again this weekend, negotiating the sale of Lehman Brothers. Barclay's Bank of London is the suspected purchaser of the 'good bank' side of Lehman's business, or the performing side.
A group of 10 to 15 Wall Street firms would buy the 'bad bank' side of Lehman, or the nonperforming side with all the bad loan debts. Each firm would provide a portion of the estimated $30 billion to underwrite Lehman's mortgage related losses. That's the same amount guaranteed by the US government in their bailout of Bear Stearns, by the way.
Expect an announcement some time today, before the US markets open Monday morning.
Update, 12:43pm Phoenix time - Barclays pulled out of the talks. Lehman needs a new buyer by Monday's market opening bell or they'll probably be declaring Chapter 11 bankruptcy. Yikers!