Lehman losses hit world stocks

Fourth-largest US investment bank announces third-quarter loss of about $4 billion.

    Lehman plans to sell a majority stake in its investment management unit [EPA]

    "This is an extraordinary time for our industry, and one of the toughest periods in the firm's history," Richard Fuld, Lehman's chief executive, said.

    The investment bank has already taken $7 billion in credit-related write-downs and losses since the start of the global credit crisis.

    World stocks, meanwhile, fell toward two-year lows on Wednesday as the problems faced by Lehman stoked concern that banks are struggling to rebuild capital and financial markets remain brittle.

    Anticipating continued market upheaval, Christian Jimenez, president of Imene Investment partners in Paris, said: "Lehman's meltdown won't probably be the last negative episode of this credit crisis."

    "The consequences of the troubles in the banking system will continue to drag the economy, and stocks will stay in the doldrums for a while before we see any durable rebound."

    SOURCE: Agencies


    YOU MIGHT ALSO LIKE

    'We scoured for days without sleeping, just clothes on our backs'

    'We scoured for days without sleeping, just clothes on our backs'

    The Philippines’ Typhoon Haiyan was the strongest storm ever to make landfall. Five years on, we revisit this story.

    How Moscow lost Riyadh in 1938

    How Moscow lost Riyadh in 1938

    Russian-Saudi relations could be very different today, if Stalin hadn't killed the Soviet ambassador to Saudi Arabia.

    Daughters of al-Shabab

    Daughters of al-Shabab

    What draws Kenyan women to join al-Shabab and what challenges are they facing when they return to their communities?