Lehman Brothers post $2.8 bn loss in second quarter

June 17th, 2008 - 7:13 am ICT by IANS  

New York, June 16 (DPA) US investment bank Lehman Brothers said Monday it suffered a net loss of some $2.8 billion, or $5.14 per share, in the second quarter of fiscal 2008. Reporting figures through May 31, Lehman Brothers cited the repercussions from the crisis on financial markets, with write downs of assets and trading losses.

With the second quarter figures, Lehman Brothers’ first-half net loss came to $2.3 billion, or $4.33 per share, as against net income of $2.4 billion in the previous-year period.

Amid the turbulence, company chairman and chief executive officer Richard S. Fuld Jr. announced management personnel changes, with Bart McDade to become president and chief operating officer, who takes over from Joseph Gregory.

Ian Lowitt, the co-chief administrative officer, was appointed as chief financial officer, in place of Erin Callan.

Fuld said the measures being taken were to “restore the credibility of our great franchise and ensure that this quarter’s unacceptable performance is not repeated”.

Lehman Brothers’ report largely matches the preliminary figures issued last week, when the company also announced plans to raise $6 billion in additional capital in coping with the problems on the market.

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