Lehman Brothers, other US banks buffeted by falling confidence

NEW YORK (AFP) — Investment giant Lehman Brothers and other US banks are being roiled by falling confidence in the banking sector which has been spurred in part by hefty mortgage-related losses, analysts said.

Lehman Brothers has lost hundreds of millions of dollars tied to mortgage investments, but it has also been fighting bogus rumors about its financial standing for weeks.

The rumor mill has kicked into a higher gear since the near-collapse of rival bank Bear Stearns in March which was taken over by JPMorgan Chase in an eleventh hour government-backed deal.

Lehman's shares closed down 14 percent at 12.40 dollars Monday. Its stock has tumbled heavily in the past week and dived around 80 percent from its high this year, struck in early February, of 66 dollars.

The storied Wall Street finance house's shares have now tumbled to their lowest levels since the ...