Lehman posts Jumbo $3B Loss; To Raise $6B

I’ll have more on the brokers later today, but this is simply an enormous whack:

Lehman Brothers to post $3 bln loss; sets $6 bln stock sale   
Marketwatch, June 9, 2008

Charlie Gasparino on CNBC is reporting that he does not expect Lehman to exist as an independent company 6 months from now.

Einhorn comment: "Lehman is raising capital it said it didn’t need to replace losses it said it didn’t have."

LEH is expected to open 10% lower . . .

UPDATE 2: June 9, 2008 8:48am

Here are the details (via CNBC) of the Lehman offering:

$6 Billion secondary is priced at $28.00 common stock.

Convertible offering carries a 8.75% coupon

%18 conversion premium


UPDATE: June 9, 2008 8:02am

Moody’s (MCO) ever timely and precisely accurate, lowers the rating outlook on Lehman Brothers to negative from stable. Moodys: "Concerns over risk management decisions that resulted in elevated real estate exposures and the subsequent ineffectiveness of hedges to mitigate these exposures in the recent quarter."



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