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.