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To: Peter V who wrote (127768)	6/7/2008 12:51:52 PM
From: John Chen	Respond to of 306849

"Who smells bullshit? ". The smell of "filthy rich" ?

To: Peter V who wrote (127768)	6/9/2008 7:35:06 AM
From: RockyBalboa	Read Replies (2) \| Respond to of 306849

Lehman is down big time again on capital raising to cover huge Q2 Loss. AP Lehman to raise $6 billion in capital Monday June 9, 7:00 am ET Lehman Brothers will raise $6 billion of capital to cover $2.8 billion second-quarter loss NEW YORK (AP) -- Lehman Brothers says it will raise $6 billion through a stock issuance, and expects a second-quarter loss of approximately $2.8 billion due to more pain from the credit crisis. The nation's fourth-largest investment bank said Monday it expects to post a loss of $5.14 per share for the quarter ended May 31. It made $489 million, or 81 cents per share, in the year-ago period. Lehman says it will raise capital from both common and preferred stock. EDIT: Analysts looked for a loss of between 22c and 75c (before or including some credit costs, adjusted. This is an ugly miss).

To: Peter V who wrote (127768)	6/9/2008 7:37:47 AM
From: RockyBalboa	Respond to of 306849

Lehman posts $2.87 billion loss All eyes will be on Lehman Brothers (LEH) when trading opens Monday. The brokerage firm posted a massive second-quarter loss but said it will raise $6 billion in new capital to shore up its balance sheet. Lehman lost $2.87 billion, or $5.14 a share, reversing the year-ago profit of $1.26 billion, or $2.21 a share. Analysts surveyed by Thomson Financial were looking for a loss of just 22 cents a share. The firm said revenue swung to negative $668 million in the latest quarter from $5.51 billion a year earlier, reflecting mark-to-market asset writedowns and trading losses. “I am very disappointed in this quarter’s results. Notwithstanding the solid underlying performance of our client franchise, we had our first-ever quarterly loss as a public company,” said CEO Dick Fuld. “However, with our strengthened balance sheet and the improvement in the financial markets since March, we are well-positioned to serve our clients and execute our strategy.” Lehman said it did cut its leverage in the second quarter ended May 31, reducing its net leverage ratio - reflecting its borrowing for each dollar of equity - to 12.5 from 15.4. Lehman said it cut net assets by $60 billion in the latest quarter. The news comes just a week after reports emerged that Lehman would need to raise more capital. The Wall Street Journal initially reported the firm would raise $3 billion to $4 billion by selling common stock. In the end, the firm set plans to raise more money, but said it did will do so by selling both common and preferred stock - even though ratings agency S&P last week warned that it may not count some preferred stock offerings as capital because financial firms have sold so many so-called hybrid securities over the past year. Lehman didn’t identify the buyers of its stock, but the Journal earlier said New Jersey’s state investment fund and former AIG (AIG) chief Hank Greenberg’s C.V. Starr were both buying in. The firm is surely hoping news of the new investors will calm the fears about its financial strength. Worries about the firm’s balance sheet have intensified since last month, when hedge fund manager David Einhorn, who is short Lehman’s stock, raised new questions about Lehman’s accounting. Lehman shares dropped 12% last week, as investors fretted over the firm’s health, and they dropped 11% in premarket trading Monday. Back to main column dailybriefing.blogs.fortune.cnn.com