Reuters) - Lehman Brothers Holdings Inc (NYSE:LEH - News), the smallest major Wall Street investment bank, on Monday said it <b>expected to report a second-quarter loss of about $2.8 billion, or $5.14 per share</B>, hurt by losses related to trading and hedging. The New York-based company also said it <B>expected to raise $6 billion from public offerings of common stock and convertible preferred stock </B>to bolster its capital base
wow on LEH jeez what volatility.. i was short LEH at 46 a while back then hit my exit at 48 and got stopped out... Shoot
LEH makes a big deal out of buying their own stock at 32-33 last week. And now they sell their own stock at 28 to raise capital. It's the inverse arbitrage!
That's not true. BSC had a much more leveraged balance sheet, and the most exposure to subprime of any of the main firms on Wall Street. It was the most vulnerable to any subprime collapse. This was publically available information. People specifically shorted BSC last year because of this. Nice call on LEH so far
Actually, now that LEH is lower than when I made that 2nd call, this is my chance to semi-gracefully back away from it. That day last week when it plunged from 35 to 30 on massive volume & puts- The insiders were pricing in <i>something</i> that day... but now I believe that mystery <i>something</i> was merely today's lousy, yet non-fatal news... not insolvency. Flat, Mortimer Flat!