
Lehman brothers posts first loss since going public
Losses and Lawsuits
NEW YORK - Lehman Brothers, the fourth largest US investment bank, has published a quarterly loss of $2.8 billion (£1.4 billion) - the first since the bank went public in 1994. Lehman blamed the loss on hedge funds and investments linked to subprime debt. The bank also announced that it is seeking a $6 billion capital injection to rebuild depleted assets, despite earlier claiming it would not require additional funding. Lehman has also demoted two executives, chief financial officer Erin Callan and chief operating officer Joseph Gregory, while the bank and its senior management are being sued in a shareholder class action lawsuit, accused of misleading investors on subprime exposure.
Lehman's shares have fallen 60% this year, which chief executive Richard Fuld described as an "unacceptable performance" that must not be repeated. The bank said it has now cut its exposure to residential and commercial mortgages and other property investments by 20%. More quarterly losses are now expected from Citigroup, Deutsche Bank, Credit Suisse and UBS. Goldman Sachs analysts estimate that UBS will write down a further $3.9 billion of struggling assets.
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 [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact [email protected] to find out more.
You are currently unable to copy this content. Please contact [email protected] to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email [email protected]
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email [email protected]
More on Regulation
7 days in 60 seconds
Bank capital, margining and the return of FX
The week on Risk.net, December 12–18
Receive this by email