Lehman Bank to Buy Capital Crossing

Lehman Brothers Bank FSB, a subsidiary of Lehman Brothers, the New York-based investment bank, has agreed to acquire Capital Crossing Bank, Boston, in a deal valued at $210 million.Lehman Brothers Bank will pay $30 per share in cash for each outstanding share of Capital Crossing, which is an investor in whole loans and loan portfolios secured by commercial, multifamily, and residential properties. "We have partnered with Lehman Brothers on loan purchase transactions for quite some time, and believe that a combination of our platform, people, and expertise with their balance sheet and brand equity will take our business to the next level," said Richard Wayne, president and co-chief executive officer of Capital Crossing. Mr. Wayne and Nicholas W. Lazares, chairman and co-chief executive, will continue as co-CEOs of Capital Crossing after the deal is completed and will become managing directors of Lehman Brothers. Edward Mehm and Demetrios Kyrios, executive vice presidents of Capital Crossing, will also join Lehman Brothers as managing directors.