Fallen Tycoon to Auction Prized Works*

Lehman's Fuld and Wife Consign Millions in Postwar Art to Christie's for November Sale

• It could also evoke the plight of its owners, Richard Fuld Jr. -- chairman and chief executive of Lehman Brothers Holdings Inc., the bankrupt holding company -- and his wife, Kathy, a well-known collector of modern art.

Christie's

Study for Agony I: Arshile Gorky (1904-48). This work, estimated to sell for up to $2.8 million, is a preparatory sketch for a painting now in New York's Museum of Modern Art.

The Gorky drawing is part of a group of 16 postwar drawings owned by the Fulds that were quietly put up for sale by Christie's last month, according to people familiar with the situation. The sketches were consigned in early August following a competitive bidding process between Christie's and Sotheby's. Christie's wouldn't confirm the identity of the seller but says the total presale estimate of the works is between $15 million and $20 million. The auction house also confirmed the deal included a guarantee, an undisclosed sum promised to the seller whether or not the works sell.....

Mr. Fuld and his wife still have a sizable art collection and a primary residence in Greenwich, Conn., featuring an indoor squash court. They also own a $21 million Park Avenue co-op, a home in Vermont and another one in Sun Valley, Idaho. In addition, Mr. Fuld in 2004 paid $13.75 million for an oceanfront house in Jupiter Island, Fla. He has since rebuilt the home.

Mr. Fuld isn't the only Lehman executive out selling assets. Former Lehman President Joe Gregory has his $32.5 million home in New York's Hamptons area up for sale and recently had his home in Manchester, Vt., up for sale. That listing has been withdrawn.*

* The Wall Street Journal