Skip navigation
Watchlist Sponsored By :


Current DateTime: 05:18:57 30 Nov 2009
LinksList Documentid: 24355697
  • The Cost of True Love

      In the popular holiday song "The 12 Days of Christmas," the cost of gifts - from the 12 drummers drumming to a partridge in a pear tree - is quite pricey.

  • Runway Angels

      The superbowl of fashion shows, models walk down the runway at the 2009 Victoria's Secret Show.

  • Smartphone Guide

      Here's a need-to-know guide to nine devices, based on features, price, network and platform.

FEATURED QUIZZES


Current DateTime: 05:18:57 30 Nov 2009
LinksList Documentid: 33793611
  • Test Your Google IQ

      How much do you know about the most popular search engine in the world? Take the following quiz and find out.

  • How Well Do You Know Your Bird?

      Let's talk turkey. Test your turkey knowledge and perhaps pick up a bit of trivia to trot out at your holiday meal.

  • A Healthier & Wealthier You

      Take the following quiz and find out how much you know about the impact of obesity on the health of the U.S. economy.


Current DateTime: 05:18:57 30 Nov 2009
LinksList Documentid: 24890560
  • Holiday Central

      There are plenty of reasons to believe that this Christmas holiday season will not be as bad for retailers as last year.

  • Winterizing Your Portfolio

      If 2009 was the winter of our discontent, will 2010 be a winter wonderland for investors? A lot depends on the recovery—or lack thereof.

  • Investor's Guide to Real Estate

      Some even say the long-awaited recovery is here. Regardless, buyers and sellers alike can profit from our guide.

powered by digg
Lehman May Pre-Announce Results, Raise Capital
By: Charlie Gasparino, , On-Air Editor | 05 Jun 2008 | 05:29 PM ET
Text Size

Executives at Lehman Brothers, the embattled securities firm, are weighing whether to pre-announce the firm's second-quarter results in an effort to dispel market rumors that the firm is facing a liquidity crisis, people close to the firm told CNBC.

Lehman Brothers
Bert van Dijk
Lehman Brothers

Lehman has traditionally released its earnings for the second quarter during the week of June 16, which is in two weeks. But people close to the firm say executives are considering whether to move those earnings up, possibly to next week.

The earnings announcement, these people say, would likely come in conjunction with a move by the firm to find new capital.

CNBC has learned that one new capital-raising option now being discussed is something similar to what's known as a "rights offering," whereby Lehman would approach existing shareholders and get them to buy stock in the company, possibly at a discounted price.

Lehman [LEH  Loading...      ()   ] had no comment.

People close to the firm tell CNBC that Lehman is considering several ways to raise new money to address fears by some investors that the firm is under-capitalized and could be suffering from a liquidity crisis.

During its earnings announcement, the firm is expected provide details on its recent effort to "deleverage," or massively reduce the amount of money it borrows from outside sources to fund operations.

An internal Lehman memo obtained by CNBC shows that Lehman has reduced its levearge up to 25 percent over the last quarter. The memo also said that Lehman was buying back only small amounts of stock as part of a regular buyback program. Newspaper reports stated that the recent spike in shares of Lehman was the result of a recent massive buyback effort.

Lehman has been under a cloud since Bear Stearns imploded, and short-sellers began targeting the firm as the next major financial institution to implode. In recent weeks, the firm has been the target of short-seller David Einhorn, who has said the firm underestimated the amount of problem assets on its books and would have to writedown much of this bad debt, leading to fears of a liquidity crisis at the firm

Lehman has said that it isn't suffering a liquidity crisis. That said, the firm still faces an uncertain future. It's likely to announce a second-quarter loss. The reduction in leverage and risk-taking is likely to lead to lower profit margins for the firm.

© 2009 CNBC
Tools:
Print EmailAdd This share icon
  • digg share

CNBC HIGHLIGHTS

  • Ever wished your cab driver would stop chatting and just get to where you're going? Well, that moment is closer than ever.
  • UPS truck
  • UPS is giving its customers the option to offset its carbon emissions when sending a package.
  • Romania's presidential campaign has been rocked by a video that may show the president striking a 10-year-old boy.
  • alligator
  • Raising alligators is hard work, and the fickle taste of rich consumers has just made it much harder, says the NY Times.
  • A recent issue of ESPN Magazine was one of its top sellers ever, and it only took scantily clad athletes to make it happen.
  • The continued real estate boom in China is partially fueled by a generational flood of newlyweds.
ADD COMMENTS
Remaining characters


Current DateTime: 01:13:25 30 Nov 2009
LinksList Documentid: 29778428

Current DateTime: 11:44:56 30 Nov 2009
LinksList Documentid: 29779196

Current DateTime: 04:05:27 30 Nov 2009
LinksList Documentid: 29779199

Current DateTime: 11:23:57 30 Nov 2009
LinksList Documentid: 29779198
  Data is a real-time snapshot  *Data is delayed at least 15 minutes
Global Business and Financial News, Stock Quotes, and Market Data and Analysis

© 2009 CNBC, Inc.  All Rights Reserved.
A Division of NBC Universal
Thomson ReutersThomson Reuters