Shares in Lehman Brothers sank nearly 6% Wednesday to $39.56 after several analysts downgraded the investment bank, warning of a Q2 loss due partly to the poor performance of hedging positions on its large mortgage exposure. Susan Roth Katzke, a Credit Suisse analyst, said she expects Lehman to post a Q2 loss of 60 cents per share. Katzke, who previously expected a profit of 67 cents per share, said the decline would be driven by a $900m loss in Lehmanâs fixed-income business. Erin Callan, Lehman CFO, has said publicly that Lehmanâs previously successful hedges are no longer performing well. Lehman reports earnings in early June. Shares in other investment and commercial banks also declined on a day of broad declines across the stock market, although Lehman saw the biggest drop. http://ftalphaville.ft.com/blog/2008/05/22/13247/lehman-shares-down-on-loss-fears/ http://www.ft.com/cms/s/0/9c9380c4-2789-11dd-b7cb-000077b07658.html?nclick_check=1 900 million ? Peanuts !