Despite the new management team at Lehman Brothers, they face very tough time ahead.
Today Lehman Brothers Holdings Inc (The parent corporation) posted a larger-than-expected third-quarter loss. They lost a whopping $5.92 per share in Q3 and slashed the annual dividend. Management also confirmed rumours of plan to sell a majority stake in its investment management division and spin off commercial real estate assets.
In a week that Fannie and Freddie were bailed out by the US federal reserve, this is another major blow for global financial markets
Lehman fell by 45% in early trading, raising the spectre of yet another bailout by the US goevrnment