They made it official just now:
Lehman Brothers Holdings Inc. (“LBHI”) announced today that it intends to file a petition under Chapter 11 of the U.S. Bankruptcy Code with the United States Bankruptcy Court for the Southern District of New York. None of the broker-dealer subsidiaries or other subsidiaries of LBHI will be included in the Chapter 11 filing and all of the broker-dealers will continue to operate. Customers of Lehman Brothers, including customers of its wholly owned subsidiary, Neuberger Berman Holdings, LLC, may continue to trade or take other actions with respect to their accounts.
All I can say is wow. Could you have imagined that Lehman would be filing for Chapter 11- even two weeks ago. All I can say is, David Einhorn must be feeling great right now. Then again, he may want to lay low for awhile. I can imagine there are a number of soon-to-be-unemployed Lehman Brothers (and Sisters) looking for the source of their idleness.