By Paritosh Bansal

Earlier, CNBC television cited Wall Street insiders as saying Fuld was weighing a sale.

Lehman declined to comment.

The fate of Lehman, the smallest of the major Wall Street investment banks, has been the subject of intense speculation in the past few weeks. Many analysts have speculated it could be a takeover candidate.

The fourth-largest U.S. investment bank posted its first quarterly loss as a public company on Monday, but Fuld said then that the company's franchise and capital position were strong.

In response to a question on a conference call after Lehman announced its results, Fuld said: "I have said many times that I very much believe that, with this franchise's strength and power, we can go it alone."

But he added that if a potential buyer came forward, he had an obligation to take its offer to the board of directors.

Some experts have said stand-alone U.S. investment banks such as Lehman are likely going to have to find commercial bank partners in the long run to get access to a stable source of funds. That would help them deal with future shocks and to sustain growth even if regulators restrict leverage.

Earlier this week, a source poured cold water on a CNBC report that Blackstone Group could be interested in taking a 20 to 30 percent stake in Lehman, saying such a move was unlikely. Blackstone declined to comment.

Lehman's shares were down $1.00, or 4 percent, to $24.14 on the New York Stock Exchange in late morning trading.

(Editing by Brian Moss and Steve Orlofsky)