Lehman expects 2.8 billion-dollar loss, to raise 6 billion in stock

0 Comments | AFP, June, 2008

WASHINGTON (AFP) — Investment giant Lehman Brothers announced Monday it expects a second-quarter loss of some 2.8 billion dollars, citing "challenging market conditions," and said it would raise 6.0 billion dollars in stock offerings.

The historic loss for the company compares to net income of 489 million dollars for the first quarter of fiscal 2008 and 1.3 billion dollars for the second quarter of fiscal 2007, the company said.

"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 chairman and CEO Richard Fuld, Jr.

"However, with our strengthened balance sheet and the improvement in the financial markets since March, we are...