Lehman Brothers Holdings will raise $6 billion in new capital to store up its balance sheet. The company said earlier that it expects to report a second-quarter loss of almost $3 billion. The loss was larger than expected, the company said.
The shares of the investment bank dropped by 8.7 percent to $29.48 against the background of concerns of its exposure to the mortgage market. Moody’s Investors Service immediately lowered its outlook on the firm after the announcement from Lehman.
Lehman has sold about $130 billion worth of assets during the quarter. The company also reduced mortgage-related assets by 20 percent. However, Lehman Brothers holding still expects to lose $2.87 billion, which is equal to $5.14 per share.
Lehman Brothers Holdings Inc., founded in 1850, is a diversified, global financial services firm.
The firm has had difficulties before. In August 2007, the firm closed its subprime lender, BNC Mortgage, eliminating 1,200 positions, in 23 locations and took an after-tax charge of $25 million and a $27 million reduction in goodwill. Lehman said that poor market conditions in the mortgage space "necessitated a substantial reduction in its resources and capacity in the subprime space.”
The discovery of the submarine has unveiled a few "inconsistencies." For example, how can one explain the fact that the sub was found where it needed to be searched for from the start?
The TurkStream, which runs along the bottom of the Black Sea from Russia's Anapa to Turkey, will consist of two lines, each with a capacity of 15.75 billion cubic meters of gas a year