Korean bank to buy Lehman Brothers?

Just when you thought Lehman Brothers' play to attract capital from overseas was dead, along comes Korea Development Bank. A spokesman says Seoul-based KDB is looking at a variety of options with Lehman, including an outright purchase, reports Fortune. No details about the talks have emerged. The issue will likely be price, again. At what price do all those still-troubled CDOs, Alt-A assets and commercial real-estate backed assets make sense? If the deal is for an equity stake, you have to wonder how large it would have to be to alleviate concerns by the markets. This may be Richard Fuld's last stand. This really needs to be a definitive deal. A big third-quarter loss, which is assumed, coupled with no hard plans to raise capital just might spell disaster. The watch continues.

For more:
--here's the Fortune article
--here's an AP article

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