12 Jul
Lehman Brothers is Next
Shares of Lehman Brothers plunged to nine-year lows and stock in other Wall Street firms declined as new signs of distress in financial markets spooked investors. Lehman fell as much as 23 percent, before recovering to be down more than 15 percent late Friday afternoon, far outpacing the drop in rivals such as Merrill Lynch & Co, which lost 5.33 percent and Goldman Sachs Group Inc, which declined 5.15 percent. Morgan Stanley fell 1.4 percent. In the last two weeks, Lehman has lost about a third of its market value, and the company’s shares now trade at less than half their book value, or the net accounting value of its assets, which typically signals extreme distress. More
Sphere: Related Content