Rule 424(b)(2)
Registration Nos. 33-56615
                                 NASD File No. 941128001

PRICING SUPPLEMENT NO. 127
Dated June 15, 1995, to Prospectus
Supplement dated January 26, 1995
and Prospectus dated January 26, 1995


                   LEHMAN BROTHERS HOLDINGS INC.
                    Medium-Term Notes, Series E
                         (Floating Rate)
       Due from Nine Months to 30 years from Date of Issue


Price to Public: 100%     Initial Interest Rate:  One (1) Month
Agent's Commission: .35%                          LIBOR Telerate
                                                 posted on 6/20/95
Interest Rate Basis:
(  ) Treasury Rate                 Original Issue Date: 6/22/95
( X) LIBOR - 1 month               Maturity Date: 6/22/98
(  ) Commercial Paper Rate         Maximum Interest Rate:______%
(  ) Federal Funds Effective Rate  Minimum Interest Rate:______%
(  ) Prime Rate                    Spread Multiplier:__________%
(  ) Other                         Spread (+ -) +.775%

Index Maturity: 1 month
                                                                      
Interest Payment Period:  Monthly

Interest Reset Period:   Monthly

Interest Reset Dates: 22nd day of every month

Interest Determination Dates: Two (2) NY/London business days
prior to interest payment dates

Interest Payment Dates:  22nd of every month and at maturity

The aggregate principal amount of this offering is $100,000,000 and
relates only to Pricing Supplement No. 127. Medium-Term Notes, Series
E may be issued by the company in aggregate principal amount of up to
$5,267,500,000 and, to date, including this offering, an aggregate of
$4,221,900,000 Medium-Term Notes, Series E has been issued and
$2,663,275,000 are outstanding.