Lehman Brothers is in the early stages of a process to auction a thrift and an industrial bank it owns, Reuters reports, citing a source familiar with the matter.

The sale of Lehman Brothers Bank FSB, a Delaware thrift, and Woodlands Commercial Bank, a Utah industrial bank, is being handled by investment bank Lazard, according to the source, Reuters reports.

Any transaction would have to go through the U.S. bankruptcy court process. Lehman filed for bankruptcy on Sept. 15, 2008, in the largest U.S. bankruptcy filing in history.

A Lehman spokeswoman said the company was selling all assets as part of Lehman's wind-down in bankruptcy, Reuters reports. Lazard declined to comment.

Reuters reports that in February a U.S. bankruptcy judge allowed Lehman to pump cash into the two banks to avoid a seizure by regulators.

Lehman Bothers Bank FSB was a centerpiece of the brokerage's mortgage loan origination, purchasing and servicing business. Lehman reported equity of about $467 million and total assets of about $6.5 billion in the bank at the end of 2008, according to Reuters.