Valuation reductions hit Lehman Brothers for $700m

Lehman Brothers’ results are being closely watched in the region as an early indication of the true extent of financial institutions' exposure to mortgage and loan commitments. Lehman Brothers’ third-quarter results cover the period up to August 31. Bear Stearns, Goldman Sachs and Morgan Stanley will also unveil their results this week.

The remarking of fixed-income positions dragged Lehman Brothers third-quarter fixed-income net revenues down by 47%, to $1.1 billion, compared with the same period in 2006. However, the securities dealer’s overall net income of $887 million for the quarter was higher than analyst expectations.

Lehman Brothers said its valuation reduction was “partially offset” by “large valuation gains on economic hedges and other liabilities”. But the firm failed to provide further details.

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Stemming the tide of rising FX settlement risk

As the trading of emerging markets currencies gathers pace and broader uncertainty sweeps across financial markets, CLS is exploring alternative services designed to mitigate settlement risk for the FX market

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here