What to make of Lehman's good bank/bad bank idea

The notion that Lehman Brothers might split itself into a bad bank--holding lots of troubled assets--and a good bank--the rest of Lehman--has been floating around for a while. Does the article in the New York Times suggest Lehman execs want a better gauge of how such an idea might be received? Possibly; they may be trying to prepare the way. But there are lots of questions as to how the bad banks would be capitalized. It's tempting to think that such a move might be a requirement for a big equity infusion from overseas investors. Bottom line: Somehow, capital has to be raised. And the clock is ticking. The Times article says that optimism about a Korean deal seems to be rising.

For more:
- here's the article

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Can Lehman Brothers be saved?