Lehman Brothers announces $6bn rights issue

Last week, the bank denied it was facing funding problems, but now expects to make a $2.77bn loss in the first half of 2008. The bank had already raised $3bn from shareholders in March to shore up its funding and will now offer common stock and convertible preferred stock via public offerings. Shares in the bank have already slumped 50% over the past year due to concerns over mortgage-backed securities. If you would like to comment on this story, contact: John Bakie Tel: 020 7484 9805 e-mail: [email protected] IFAonline