Lehman Brothers Holdings Inc. is seeking bankruptcy-court approval to pump up to $950 million into its struggling Delaware banking subsidiary so it can pay off more than a half-billion dollars worth of brokered certificates of deposit set to come due next month.
In court papers, Lehman said it wants to provide Aurora Bank FSB, formerly known as Lehman Brothers Bank FSB, with $450 million to shore up the bank's liquidity and provide another $500 million in short-term financing to the bank's servicing unit.
Lehman says the cash is necessary so the bank can meet some $550 million in deposit obligations that start coming due in August. Without the cash, Lehman says, the unit could be seized by federal banking regulators.
