Lehman heads for liquidation after Barclays walks away

US investment giant Lehman Brothers was heading for possible liquidation late Sunday after the front-runner to bail-out the embattled firm, Barclays, pulled out of negotiations.

Britain’s third largest bank walked away over concerns that it would have to guarantee Lehman’s trading commitments between now and whenever a deal was struck, a source at the bank told AFP on condition of anonymity.

The source did not say whether Barclays’ position was likely to change, and the Wall Street Journal suggested that the decision to walk away from talks could be “high-stakes brinksmanship” by Barclays and that it could return.

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