Lehman Brazil Not in Bankruptcy

Lehman’s Brazil operation, which only recently received central bank permission to operate as bank in Brazil, has not filed for bankruptcy in the country, according to US-based executives at the firm. Financial institutions in Brazil are not subject to a typical bankruptcy process, and any failings are handled by the central bank. Brazil’s central bank has not issued any statement or public information regarding Lehman Brothers’ operation in Brazil. People away from the firm say the bank was in its earliest stages of operations, and likely had few, if any, local creditors. Lehman Brazil employees are understood to be continuing their routine, awaiting further decision regarding the firm’s acquisition by Barclays. Winston Fritsch, head of the Brazil investment banking operation, was not available for comment.