David Kirkpatrick

September 10, 2008

Lehman Brothers posts almost $4B Q3 loss

Filed under: Business — Tags: , , , — David Kirkpatrick @ 11:54 pm

It’s a record for the firm since going public.

From the link:

Lehman Brothers suffered its worst quarterly loss since going public, reporting a loss of nearly $4 billion Wednesday, and announced a series of drastic steps aimed at reviving the beleaguered firm.

Among those changes were plans by the firm to spin-off part of its commercial real estate assets, sell a majority stake of its investment management division and slash its annual dividend.

Following a wild market session Tuesday in which Lehman (LEH, Fortune 500) shares plunged 45% to their lowest levels in nearly a decade, the investment bank said it lost $3.9 billion during the fiscal third-quarter, or $5.92 a share.

The results, which were released more than a week in advance to help quell fears about the firm’s underlying health, were the company’s second consecutive loss and exceeded Lehman’s $2.8 billion second-quarter loss announced in June.

Lehman Chairman and CEO Richard Fuld Jr. described the quarter as “one of the toughest periods” in the 158-year old firm’s history.