by Calculated Risk on 9/14/2008 01:53:00 PM

From the NY Times: Lehman Heads Toward Brink as Barclays Ends Talks

Unable to find a savior, the troubled investment bank Lehman Brothers appeared headed toward liquidation on Sunday, in what would be one of the biggest failures in Wall Street history.
...
What remained unclear was how a liquidation might proceed. One option that was discussed on Saturday would have major banks and brokerage firms continue to do business with Lehman as it unwinds its assets and liquidates over a period of months, according to several people briefed on the discussions. ... The overarching goal of the weekend talks was to prevent a quick liquidation of Lehman...

This seems the most likely scenario right now.

Also from WSJ: Barclays Walks from Lehman Deal; Likelihood for Transaction Narrows