Lehman Brothers Holdings received another blow this morning when a potential suitor--Korea Development Bank--received a rap on the knuckles from South Korea's chief financial regulator.

"In principle, taking over a global investment bank can become an opportunity to raise the capability of the [Korean] investment banking business," Jun-Kwang Woo, the head of the country's Financial Services Commission, told the Financial Times. "But at the same time, as the risks are also big, KDB should take a cautious approach....We welcome...