Lehman announces US$3.9bn loss

Source: Exec Digital USA

Date :9/10/2008 5:40:47 AM

Lehman Brothers reports a much larger than expected third quarter loss, hurt by US$5.6 billion of net writedowns.

Wall Street's fourth-largest investment bank has today, September 10, reported a much-larger-than-expected third-quarter loss of $3.93 billion, hurt by $5.6 billion of net write-downs.

"This is an extraordinary time for our industry, and one of the toughest periods in the firm's history," Chief Executive Richard Fuld said in a statement.

It also unveiled plans to sell a majority stake in its investment management division and spin off commercial real estate assets, as it fights to raise capital.

Lehman has already taken US$7 billion in credit-related write-downs and losses since the start of the global credit crisis and yesterday announced a management reshuffle in an attempt to draw a line under recent poor performance.