Saturday, November 29, 2008

Jeb's New Boss?

Lehman Brothers' investment management business had two famous employees when the firm sank beneath the asphalt of Wall Street. President Bush's brother Jeb worked for Lehman's private equity group, while cousin George Herbert Walker was global head of investment management.

Lehman was the fourth-largest investment bank before it filed the biggest bankruptcy in history Sept. 15 with $613 billion in debt. The fire sale price of Lehman's Neuberger Berman investment division was a mere $2.15 billion. That price may not hold with imploding financial markets. Auction bids are due December 1st.

Bain Capital planned to become part owner, but The Carlyle Group challenged the sale. Where will Jeb and George Herbert Walker land for Christmas? Will The Carlyle Group find two more Bushes under their Christmas tree? Stay tuned... (Update: Carlyle did not place a bid)