Lehman Brothers, the global investment bank, has announced a net loss of $3.9bn in its preliminary third quarter results, prompting plans for a strategic restructure.
The rescue initiative includes plans to reduce dramatically the firm's commercial real estate and residential mortgage exposure, generate additional capital through the sale of a majority stake of the investment management division and reduce the annual dividend, in a bid to provide value for clients, shareholders and employees. Richard S. Fuld, Jr., chairman and CEO, commented: "This is an extraordinary time for our industry, and one of the toughest periods in the firm's history. The strategic initiatives we have announced today reflect our determination to fundamentally reposition Lehm...
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