by Calculated Risk on 9/13/2008 11:58:00 PM

From Heather Landy and David Cho at the WaPo: Major Financial Players Map Out Lehman Options

The article outlines three options:

The talks in New York have centered on several options, including the orderly liquidation of Lehman's assets starting as early as Monday. ...

The financial leaders also discussed a good-bank, bad-bank model in which Lehman would spin off its troubled mortgage assets and other major firms would provide financial guarantees to this bad bank.
...
A third scenario involves an outright sale of Lehman to one or more suitors. The leading contenders Saturday were Bank of America, HSBC and Barclays ... In this option, companies could acquire pieces of Lehman, and the New York Fed would serve as matchmaker.

Sounds like Sunday will be another work day for Hank Paulson and the NY Fed. Something will probably be announced before the Asian markets open Sunday.