Lehmans plans to dump UK mortgage assets

Lehman Brothers is finalising a deal with BlackRock Financial to sell off the bulk of its UK residential mortgage assets, worth $4bn.

Richard Fuld, chairman and chief executive officer of Lehmans, has included the plan as part of the bank’s recovery strategy aimed at re-establishing confidence in the firm.

He says the first step of the plan, a senior management reshuffle announced last week, has resized and derisked the firm.

The strategy also involves creating an independent publicly-traded entity to give commercial property assets time to develop.

The bank expects the transaction with BlackRock to complete sometime in the next few weeks.

Fuld says the sale will reduce Lehmans’ exposure to the market by 47%.