Lehman posts Jumbo $3B Loss; To Raise $6B
I'll have more on the brokers later today, but this is simply an enormous whack:
Lehman Brothers to post $3 bln loss; sets $6 bln stock sale
Marketwatch, June 9, 2008
Charlie Gasparino on CNBC is reporting that he does not expect Lehman to exist as an independent company 6 months from now.
Einhorn comment: "Lehman is raising capital it said it didn't need to replace losses it said it didn't have."
LEH is expected to open 10% lower . . .
UPDATE 2: June 9, 2008 8:48am
Here are the details (via CNBC) of the Lehman offering:
$6 Billion secondary is priced at $28.00 common stock.
Convertible offering carries a 8.75% coupon
%18 conversion premium
UPDATE: June 9, 2008 8:02am
Moody's (MCO) ever timely and precisely accurate, lowers the rating outlook on Lehman Brothers to negative from stable. Moodys: "Concerns over risk management decisions that resulted in elevated real estate exposures and the subsequent ineffectiveness of hedges to mitigate these exposures in the recent quarter."
Dirty Tricks at Lehman? (June 2008)
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Gasparino did do a good job of saying he was wrong last week...
Posted by: Eric Davis | Jun 9, 2008 7:33:22 AM
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