Lehman to Manage California’s Bond Sale
Lehman Bros. Holdings Inc. was named manager of a $15-billion California bond sale approved by voters Tuesday, an offering that could generate a $44-million fee for the firm.
Lehman will be senior manager on the sale, California Treasurer Phil Angelides said. Bank of America Corp., Citigroup Inc., Goldman Sachs Group Inc., J.P. Morgan Chase & Co., Merrill Lynch & Co. and Morgan Stanley are among firms that will help manage the sale.
The offering is part of Gov. Arnold Schwarzenegger’s plan to pay off accumulated budget deficits and fill part of the coming fiscal year’s budget gap.
Lehman won the contract because the firm worked on a bond approved by lawmakers last year, Angelides said. That sale was challenged in court by a taxpayer’s group.
On Thursday, the new deficit-bond plan also faced a legal challenge: Three dozen California cities filed a suit seeking to bar the state from raiding their sales tax revenues to help repay the bonds.
Inside the business of entertainment
The Wide Shot brings you news, analysis and insights on everything from streaming wars to production — and what it all means for the future.
You may occasionally receive promotional content from the Los Angeles Times.
