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

    The shocking story of Israel's disappeared babies

    The shocking story of Israel's disappeared babies

    New information has come to light about thousands of mostly Yemeni children believed to have been abducted in the 1950s.

    Stories from the sex trade

    Stories from the sex trade

    Dutch sex workers, pimps and johns share their stories.

    Inside the world of India's booming fertility industry

    Inside the world of India's booming fertility industry

    As the stigma associated with being childless persists, some elderly women in India risk it all to become mothers.