Lehman Brothers' to file for bankruptcy protection

TOKYO: Lehman Brothers Japan Inc will file for bankruptcy protection with the Tokyo District Court, sources said on Tuesday.

The Japanese unit of US securities house Lehman Brothers Holdings Inc will invoke the Civil Rehabilitation Law, the sources said.

The fourth-largest US securities house founded in 1850, said it filed for bankruptcy protection Monday in New York after bailout talks faltered over the weekend.

Shortly after the filing, Japan's Financial Services Agency (FSA) ordered Lehman Brothers Japan to suspend operations for 12 days through Sept 26, as the agency received a report from the Japanese unit that it may fall into a default in the long run.

The FSA also ordered the unit to retain certain assets within Japan in order to prevent Lehman assets here from being transferred to its other units and affiliates outside Japan as well as to protect investors here.

According to the FSA, the Japanese unit manages about 1.2 trillion yen worth of assets, mainly for institutional investors.

Meanwhile, US President George W Bush said his administration is working to minimize the effects on financial markets from Lehman Brothers Holdings Inc's bankruptcy and its ramifications.