This sounds a lot like Bradford and Bingley in the UK. Lehman is really on the edge of collapsing. They need the money….NOW! One must believe the second leg down in bank credit write-offs and the credit crunch has started.
By Steve Gelsi
Last update: 6:54 a.m. EDT June 9, 2008
NEW YORK (MarketWatch) — Lehman Brothers Holdings Inc. on Monday said it’ll raise $6 billion in a stock offering. The investment bank also expects to report a second-quarter loss of $2.8 billion, or $5.14 a share, from a gain of $489 million or 81 cents a share in the year-ago period. Total revenues less interest expense will be $700 million, down from revenue of $5.5 billion in revenue in the year-ago period. Net revenue for the second quarter reflects negative mark to market adjustments and principal trading losses, net of gains on certain debt liabilities, Lehman said.
–MarketWatch, 9 Jun 2008
Updated as events occur.
See the Credit Crisis Timeline for a full list of writedowns by institution.