Wednesday, September 10, 2008

Boo! Pre-Halloween Jitters Has Lehman Brothers "Committed To Examining All Strategic Alternatives" But In Reality Is Selling Its Business

Markets Take Fright As Wall Street Bank Rushes Out Results

Lehman Brothers CEO Richard Fuld

CEO Richard Fuld is under pressure. Photograph: AP

Lehman Brothers today moved to avert a mounting crisis at the bank by rushing out its third-quarter results and detailing plans to spin off most of its commercial real estate assets and raise cash by selling off a stake in its investment management business.

But markets on both sides of the Atlantic took fright after the bank said it expected to lose $3.9bn (£2.2bn) in the third quarter after writedowns of $5.6bn on bad investments in mortgages. It also cut its full-year dividend to conserve cash from 68 cents to just 5 cents.

In its statement, the bank said it remained "committed to examining all strategic alternatives", which was immediately interpreted as offering the business for sale.

1 comment:

Anonymous said...

You're on the money bro, thanks for all the heads up!