Bankruptcy

Lehman Stock Sinks

By J. Michael McBride

On news that Lehman Brothers’ discussions with a Korean Bank (for a cash infusion/takeover) had faltered, the shares of that venerable Wall Street firm have sunk to new lows.

“The nation's fourth-largest investment bank had hoped to secure a deal with the Korean [government controlled] fund before announcing third-quarter earnings on Sept. 18. Lehman is facing billions of dollars in losses from wrong-way bets on mortgage securities, and had hoped another round of capital raising would encourage investors.

Shares of Lehman dropped shortly after a Dow Jones Newswires report quoted the head of South Korea's financial regulator as saying the talks had concluded. However, it appears that report itself is being disputed.

Lehman's stock plunged as much as 45 percent in late-morning trading, and is down more than 90 percent this year. The stock fell as low as $8 before recovering a bit to $9.89, down $4.26 or 30 percent, at midday.”

Here is a link to that article:
http://www.cbsnews.com/stories/2008/09/09/business/main4431145.shtml

Michael

Full post as published by Texas Lawyer Blog on September 09, 2008 (boomark / email).