Source repeats Paulson wants no government funds for Lehman

WASHINGTON (Reuters) - U.S. Treasury Secretary Henry remains strongly opposed to using government money in any deal aimed at resolving a crisis at Wall Street investment bank Lehman Brothers, a source familiar with his thinking repeated on Sunday.

A similar characterization of his position was first offered on Friday before intense weekend talks began in New York on Lehman's fate.

By Sunday afternoon, chances for a deal that would see another firm take over Lehman appeared to be fading and prospects were increasing that it could go bankrupt.

(Reporting by Glenn Somerville)