Lehman To Lose $3.9 Billion

Author:
Publish date:

Lehman Brothers said this morning that it expects to lose $3.9 billion ($5.92/share) for the third quarter, on $7.8 billion in write-downs (not beating expectations of a $3.35/share). The bank will spin off to its shareholders $25 billion to $30 billion of commercial mortgages into a new public company called to be called Real Estate Investments Global. LEH also has plans to sell a majority stake in its investment management division. And they are "committed to examining all strategic alternatives," including a complete takeover (though no one actually said that). According to CEO Dick Fuld, "Intense public scrutiny has been a distraction for clients and employees," and if we'd all just left them alone everything would've be fine.
Lehman Brothers Announces Preliminary Third Quarter Results and Strategic Restructuring [PR Newswire]
Lehman To Sell Assets, Sees Loss [WSJ]

Related