The former US treasury secretary made the comments during a speech in New York, the Times reported.
In his new book, On the Brink, Mr Paulson blamed the failure of the ailing financial institution on the chancellor and UKâs Financial Services Authority (FSA).
He stated that the regulatorâs unwillingness to give its approval to the acquisition of the bank by Barclays led to its collapse.
When he discovered that the FSA would not allow the sale to go-ahead, he said: âThe British screwed us.â
However, Mr Paulson is reported to have admitted that he regrets blaming the UK for Lehmanâs collapse.
The politician is quoted by the Times as saying: âIt was frustration. But I donât know if the situation had been reversed and I was the British, I donât know how I would have acted. You canât walk in another personâs shoes, so I shouldnât criticise them. I did, but I shouldnât have.â
Mr Paulson previously worked as the chief executive of Goldman Sachs before taking on the role of US treasury secretary.
By Jim Ottewill