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The investment house stated none of the broker-dealer subsidiaries or other subsidiaries of Lehman Brothers Holdings Inc would be included in the petition and these branches of the business would continue to operate.

In a statement to the stock exchange, the board of directors of Lehman Brothers stated they authorised the filing of the petition in order to protect its assets and maximize value.

In conjunction with the filing, Lehman Brothers stated it intended to file a variety of first day motions that will allow it to continue to manage operations in the ordinary course.

Those motions include requests to make wage and salary payments and continue other benefits to its employees.

Meanwhile, in a statement, The Financial Services Authority (FSA) said: "Lehman Brothers is a US institution regulated by the SEC, so the FSA is working closely with the US authorities to ensure an orderly wind down of its principal UK trading subsidiary, Lehman Brothers International (Europe), which was placed into administration earlier this morning.

"The FSA is working with market practitioners, including the London Clearing House (LCH), to ensure the process connected with the winding down of this wholesale business is completed in an orderly manner to minimise any market disruption."