One of the disadvantages of having a company's stock beaten down is that it can become a takeover target. That may be about to happen to Lehman (NYSE: LEH). Barclays (NYSE: BCS) is shopping for investment banks, and Lehman appears to be on the list.

According to The Telegraph, "Lehman would add to Barclays Capital's existing stronghold in the debt market - which could mean bloody job cuts - but would massively bolster its presence in the US." Barclays might use a buyout to raise money to recapitalize the bank. Buying a new business which is attractive to investors might make it easier to get capital for the new and improved entity.

One argument for the deal is that Wall Street still employs too many people all chasing the same markets and customers. The JP Morgan (NYSE: JPM) buyout of Bear Stearns allow the bank to cut more than 7,000 jobs, instantly improving margins. Lehman's market cap has dropped to $24 billion, about half what it was less than a year ago.

Being a failure sometimes means losing the chance to stay independent.

Douglas A. McIntyre is an editor at 247wallst.com.