Several private equity firms have apparently made bids for the asset management division of Lehman (NYSE: LEH), including Neuberger Berman. The offers are said to be as high as $5 billion, and two of the firms who have made bids are Bain Capital LLC and Clayton Dubilier & Rice Inc.

Getting the "healthy" part of Lehman may be the deal of the century. According to Bloomberg, "the private-equity firms may get the investment business at a discount. Lehman's asset-management unit earned $361 million on $2.3 billion of revenue this year through August, according to a Sanford Bernstein."

The news is an indication of just how badly Lehman CEO Richard Fuld has screwed up his chances to save his company. Lehman's market cap it only $2.5 billion. A sale of its money management arm for $5 billion would have brought in enough capital to stabilize the company and might have prevented the run on its stock that has taken it from $16 to under $4 in five trading days.

Based on rumors from the major financial papers and websites, Lehman may be broken up and sold off before Monday. Neuberger Berman could have been sold weeks ago and Lehman would have had a way out.

But, it wasn't.

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