Rule 424(b)(2)
Registration Nos. 33-62085
                                        NASD File No. 950825005
PRICING SUPPLEMENT NO. 174
Dated July 23, 1996, to Prospectus
Supplement dated February 23, 1996
and Prospectus dated October 30, 1995


                   LEHMAN BROTHERS HOLDINGS INC.
                    Medium-Term Notes, Series E
                         (Fixed Rate)
       Due from Nine Months to 30 years from Date of Issue
     Interest Payable each February 8 and August 8 and at Maturity

Pricing to Public: 67.55%

Agent's Commission: .50%

Original Issue Date: 8/8/96

Maturity Date: 8/8/11 (1)

Interest Rate Basis:
        Years 1-5   8/8/96 to and including 8/7/01     0.00%
        Years 6-15  8/8/01 to and including 8/7/11     9.00%

1) Call Feature:  The Company has the right to call the Notes at par
on or after 8/8/01 on interest payment dates.  Call notice is ten
calendar days.

The  aggregate  principal amount of this offering  is  $5,000,000  and
relates only to Pricing Supplement No. 174. Medium-Term Notes,  Series
E  may be issued by the company in aggregate principal amount of up to
$6,267,500,000 and, to date, including this offering, an aggregate  of
$5,764,300,000 Medium-Term Notes, Series E has been issued and
$2,910,715,000 are outstanding.

The Agent has purchased the Notes as principal in this transaction and
may  resell  any  of  such Notes to another broker/dealer  (acting  as
principal  for the purposes of resale) at a discount, which  may  vary
from   the  discount  received  by  the  Agent  in  such  transaction.
      SUPPLEMENTAL UNITED STATES FEDERAL INCOME TAX DISCLOSURE

Under the OID Regulations, the Notes will be treated as Original Issue
Discount  Notes with OID that must be accrued through August 8,  2001.
The  amount  of  OID on a Note will equal the difference  between  the
Stated  Redemption  Price  at Maturity (the  stated  principal  amount
herein)  of  such  Note  and its Issue Price.  United  States  Holders
should  accrue OID in income on a constant yield basis as  more  fully
described   in  the  Prospectus  Supplement  to  which  this   Pricing
Supplement relates.

In  the  event the Company does not call the Notes on the  first  call
date,  the  Notes should be treated as reissued on such  date  for  an
amount  equal to the Notes' Adjusted Issue Price (the stated principal
amount herein).  Moreover, all of the stated interest payments on  the
Notes  will  be  treated as OID.  As a result, United  States  Holders
will,  in  effect, be required to accrue interest income on a constant
yield  basis  even  if  the holders are on  the  cash  method  of  tax
accounting.

A  United  States Holder of the Notes should refer to  the  Prospectus
Supplement  to which this Pricing Supplement relates for  further  tax
disclosure.

Capitalized  terms  not  otherwise defined  herein  have  the  meaning
ascribed  to  them  in  the  accompanying  Prospectus  Supplement   or
Prospectus.