Aurora Bank faces liquidity challenges-securities filing

NEW YORK, July 8 (Reuters) - Aurora Bank faces "significant liquidity challenges" in the third quarter because of difficulty in accessing the market for brokered certificates of deposit, Lehman Brothers Holdings Inc LEHMQ.PK said in a securities filing on Wednesday.

Aurora Bank FSB, which is based in Delaware, was earlier known as Lehman Brothers Bank FSB. Lehman Brothers Holdings filed for bankruptcy in September.

The bank and Lehman are working with regulators in case CD issuance remains difficult. Contingency plans include possible asset sales, Lehman said in slide that was part of a presentation for creditors. The presentation was filed as an 8-k with the Securities and Exchange Commission.

"The inability to access the brokered CD market will result in significant liquidity challenges for the bank in Q3," Lehman said in the slide.

Banks can suffer when they are unable to attract and retain deposits from brokers.

Representatives for Lehman were not immediately available to comment.

Earlier this year, Lehman tried to find a buyer for the bank unit, but did not like the prices it was offered and opted to support the bank units itself, according to a person familiar with the matter.

On June 29, a bankruptcy judge gave Lehman authorization to make a capital contribution to Aurora Bank of as much as $50 million. (Reporting by Chelsea Emery; Editing by Phil Berlowitz)