BlackRock exec: Lehman doesn't need outside investor

Kapito said BlackRock is a "very strong" supporter of Lehman Brothers and remains "confident in the fixed-income and equity businesses." He would not say how much BlackRock invested in Lehman this week in response to the investment bank's move to raise $6 billion of fresh capital by selling common and preferred shares.

He downplayed Lehman's need to strike a deal to stay in business. There has been speculation Lehman Chief Executive Richard Fuld was interested in getting more capital from a sovereign wealth fund, or possibly taking on a major investor from among BlackRock, private equity's Blackstone LLP or global bank HSBC Holdings PLC. The last two companies declined to comment.

"We've evaluated this company as a fiduciary for our clients, and it is a solid investment," Kapito said in an interview with The Associated Press. "Good leadership is going to look at all their options. With the capital that Lehman raised, and leadership they have, they will be fine without having to get a strategic partner."

Global banks and brokerages have had to raise massive amounts of capital to offset nearly $300 billion of losses stemming from the global credit crisis. On Thursday, Merrill Lynch & Co. Chief Executive John Thain said his firm might consider selling its stakes in Bloomberg LP or BlackRock, in which it owns a 49.8 percent stake.

Kapito said Merrill has not been in contact with BlackRock about a possible sale. However, he believes that "Thain is like every other CEO that has to evaluate all their options."

Shares of Lehman fell some 30 percent in the past week after the company pre-released its quarterly results, and on Thursday demoted its chief financial officer and chief operating officer. The stock began to come back on Friday, rising $2.46, or 11 percent, to $25.16 in midafternoon trading.

Lehman will release more details about its second-quarter performance on Monday.