Wednesday, September 10, 2008

Lehman reports $3.9 billion loss, plans changes

Richmond Times-Dispatch

Lehman Brothers Holdings Inc., the fourth-largest U.S. securities firm, reported a $3.9 billion third-quarter loss and said it plans to sell a majority stake in its investment-management unit as it struggles to survive a crisis of investor confidence.

"This is an extraordinary time for our industry and one of the toughest periods in the firm's history," Chief Executive Officer Richard Fuld said in a statement today. Analysts surveyed by Bloomberg estimated the New York-based firm would report a $2.2 billion loss.

The credit-market meltdown has led to more than $500 billion of writedowns and credit losses since it began a year ago, sending financial shares around the world swooning. Lehman lost 88 percent this year, the worst performer on the 11-company Amex Securities Broker/Dealer Index.

Lehman moved its third-quarter earnings announcement up a week to today, after talks with state-owned Korea Development Bank about a possible investment in the firm ended. The stock fell a record 45 percent yesterday.

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