The bankrupt Lehman Brothers Holdings Inc. has proposed transforming the remnants of its staff into an asset management business to begin operations by May 1.

In a court filing this week, Lehman said it wants to place its 387 remaining employees and 70 members of Alvarez & Marsal LLC, the restructuring firm handling the liquidation, into a new business called Lamco Holdings LLC and to solicit third-party assets to manage for a fee. Lehman, once the world's fourth-largest investment bank, also said it is seeking investors to acquire a stake in Lamco.

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