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October 12, 2008 3:57:20 PM CDT

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Lehman Posts $2.8B Loss, Stuns Wall St.

Posted Jun 9, 08 11:00 AM CDT in Business 

(Newser) – Lehman Brothers shocked Wall Street today by posting a $2.8 billion quarterly loss, its first in 14 years and far worse than expected, the Wall Street Journal reports. Other downmarket reports added to investor anxiety, sent stocks falling, and boosted fears that banks and securities firms remain troubled. As expected, Lehman also announced a plan to raise $6 billion in new capital.

Investors had feared for the bank after Bear Stearns' collapse, and today's news will likely spark debate over Lehman's survival, the New York Times reports. CFO Erin Callan said the bank's sale of stocks and shares, and $130 billion in assets sold since April, will restore confidence. "It’s designed to end the chatter of Lehman Brothers, and let us get back to business," she said.

Sources Wall Street Journal, New York Times

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Businessmen walk in to the Roppongi Hills complex, an office/apartment skyscraper, beside the signboard of Lehman Brothers in Tokyo Thursday, April 3, 2008.   (AP Photo/Katsumi Kasahara)
In this Jan. 24, 2008 file photo Chairman and CEO of Lehman Brothers, USA, Richard Fuld speaks during a working session at the World Economic Forum in Davos, Switzerland.   (AP Photo/Virginia Mayo, file)
Visitors to the Roppongi Hills complex, an office/apartment skyscraper, walk by the signboard of Lehman Brothers in Tokyo Thursday, April 3, 2008.   (AP Photo/Katsumi Kasahara)
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Financial Crisis  • credit crisis  • Wall Street  • subprime crisis  • Lehman Brothers  • Bear Stearns  • bank failure


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