by Calculated Risk on 9/14/2008 09:13:00 AM

The WSJ reports that the talks are continuing Sunday morning in New York: Barclays Emerges as a Leader In Talks Over Lehman Brothers

Barclays PLC ... is emerging as a leading contender for Lehman Brothers Holdings Inc. as discussions continued Sunday in London and New York ... A sale of Lehman to either Barclays or Bank of America Corp. remained dependent on government financial support ...
emphasis added

The WSJ also reports that the good bank / bad bank structure is losing support, because Wall Street firms do not want to support the bad bank and help their rival - either BofA or Barclays - acquire Lehman.