Bank Of America In Talks With Lehman

New York, NY (AHN) - Bank of America is in talks with Lehman Brothers to acquire the battered investment bank, according to a source's interview with the Wall Street Journal.

The Wall Street Journal cited unnamed sources and said a deal is "far from certain."

The speculation has already helped Lehman Brothers as its credit default swaps improved drastically late Thursday. Lehman had debt protection costs of 650 basis points before the WSJ report came out, they are now 500 basis points, which equates to $500,000 a year to insure $10 million in debt over a five year span.

Rumors swirled throughout Thursday's session as to potential suitors for Lehman as Wall Street isn't sure that the banker can make it on its own anymore.