Back in the late 1930s – when the U.S. economy was still dealing with the impact of the Great Depression – Roy Neuberger started an asset management firm, called Neuberger Berman. It was a prescient move and the firm eventually grew into a powerhouse. As of now, there are $160 billion in assets.

The firm eventually became a part of Lehman Brothers (in 2003) and as a result, got trapped in the massive bankruptcy. No doubt, this made it difficult to sell, especially in light of the dicey markets and lack of funding.

But, this week, Neuberger did find a buyer. Actually, it consists of a group of managers of the firm who will purchase about 51% of the equity (the creditors will get the remaining amount). The total price tag: $2.15 billion.

All in all, this deal looks smart (keep in mind that the proposed valuation was $7 billion in August). Neuberger has a good group of funds and a strong infrastructure. And by being independent – with managers having a heavy equity stake – Neuberger should be poised for some growth over the long haul.

More importantly, there is likely to be renewed confidence in the firm, which should help keep clients on board as well as help snag new ones.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Streetsmart Guide to Short Selling: Techniques the Pros Use to Profit in Any Market. He is also the founder of BizEquity, a valuation website.

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.

Shares of Lehman Brothers Holdings Inc. (NYSE: LEH) are up today after the company announced "strategic initiatives", including a "plan" to sell 55% of its Neuberger Berman, spin off its $30 billion commercial real estate division into a public company, and sell $4 billion of its UK residential real estate.

The company is also slashing it dividend by 93%, which is a good start. But here's what I don't understand: why not just eliminate it?

The company is looking to raise capital at an extremely weak valuation and while Neuberger Berman is a prized asset, this probably isn't the ideal time to sell it. Given that its stock is currently trading under $9 per share, shouldn't any excess cash be put to use buying back stock? Or is CEO Dick Fuld really that bearish on the company?

Maybe the idea of paying a dividend is psychological: an effort to convince people that things aren't really that dire, but I don't think anyone is fooled.

I'd love to hear someone provide a rational argument for why it makes sense for Lehman to continue paying a dividend.

Lehman Brothers Holdings Inc. (NYSE: LEH) Chief Executive Richard Fuld is running out of rabbits to pull out of his hat.

The troubled Wall Street bank, which reportedly is set to take a $4 billion write down in the third quarter, is desperate to raise capital. The Wall Street Journal says it's shopping around its investment management business, which includes Neuberger Berman. During the second quarter, the business reported net revenue of $800 million, down from $1 billion a year earlier. Its assets under management were $277 billion. Though these results were hardly spectacular, they stood in contrast to the Capital Markets business, which reported negative revenue of $2.4 billion.

Selling the asset management business would bring in between $8 billion and $10 billion, according to analysts cited by the Journal. Lehman's market capitalization now stands at about $10.4 billion thanks to the 77% decline in the stock price this year.

"Any change in the unit's ownership structure would be bittersweet for Lehman," according to the Journal. "The division has been a strong performer ever since Lehman bought it in 2003, holding up well despite the mortgage crisis. While a sale would give Lehman a cash infusion, the investment bank would lose a steady source of revenue."

Lehman acquired Neuberger for $2.6 billion in 2003, and some unhappy Neuberger executives are eager to dump their shares, the paper said.

Not all investors, however, believe that all hope is lost. Lehman's shares rose Friday on a report that billionaire George Soros boosted his stake in the company.

If the sale goes through, there is no way that Lehman will be able to remain independent.