Lehman Brothers posted a whopping $3.9 billion loss during the third quarter on account of the credit crisis. This is very bad news for a company whose stock has already plummeted by 80% this year. The mortgage bets it banked on during the 1997-2003 period are coming back to haunt it now.What's coming in the form of a rescue is an undisclosed buyer for 55% stake in its prized business of investment management. The annual dividend this year will be hit by 92.68% because of this loss. This is the last thing Richard Fuld wanted to deal with right now. He is already in trouble and is on the list of the top 10 CEOs most likely to step down this year.
2 comments:
As per the news I have got, Lehman Brothers will not exist more than 7 days from today. The company's share plunk to $3.65 "an all time low" and down nearly 95% from its 52 week high of 67.73$. It is almost certain that Lehman will be auctioned at fire sales prices.
According to Anthony Sabino, professor of law and business at St. John's University. "Nothing short of a miracle can save Lehman as is. It is highly unlikely Lehman will be in existence on Monday morning."
Bank of America and Barclays PLC are the prospective buyers and may swallow proportion of investment banking or bond trading business.
Its total loses for the year is $6.9 billion dollar.
you are right saurabh. I also think that Lehamn will not see the coming monday morning.
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