According to the NYT's "dealbook" blog (that's pretty sharp on these things), Lehman (LEH) is filing for Chapter 11 and Chapter 7 bankruptcy protection after failing to find a buyer/saviour. Quoting Dealbook:
According to people briefed on the matter, Lehman Brothers will file for bankruptcy protection on Sunday night, in the largest failure of an investment bank since the collapse of Drexel Burnham Lambert 18 years ago.
Lehman will seek to place its parent company, Lehman Brothers Holdings, into bankruptcy protection, while its subsidiaries will remain solvent while the firm liquidates its holdings, these people said. A consortium of banks will provide a yada yada etc etc click the link for the rest
Think this has nothing to do with Latin America? Think again. Think Venezuelan bonds, think FONDEN, think LEH underwriting, and think that without a shadow of a doubt Señor Moris Beracha is not a happy person tonight. Guaranteed. You wouldn't be either if you were in the hole to the potential tune of U$300m. Your forward-looking Otto says that this one might unwind in a direction you couldn't possibly imagine.