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Lehman eyes massive losses
On Wall Street, the credit crisis remains a lingering presence -- This as major investment bank Lehman Brothers forecast a quarterly loss of 2.8 billion dollars Monday. The bank says the results are attributed to trading and hedging losses. The health of Lehman Brothers came into question after the downward spiral of fellow investment bank Bear Stearns. Lehman says it plans to raise 6 billion dollars to shore up its capital base. Veteran banking analyst Dick Bove of Ladenburg Thalmann says he expects to see Lehman survive. SOUNDBITE: Dick Bove, Veteran Banking Analyst, Ladenburg Thalmann & Co., saying (English): "I think at the same point in time it will probably shrink about 100 billion dollars off of its' assets. So the net effect is I think the company is stable enough to go through a tougher environment even in the financial system." A bit of a bright spot in housing - Sales of previously owned homes rose to the highest level in 6 months. According to the National Association of Realtors, pending home sales rose 6 percent in April. Keep in mind that even with the increase, sales were still 13 percent lower than a year ago. Meantime, McDonald's, posted strong same store sales. The world's largest restaurant chain said global sales rose 7.7 percent in May, thanks to rising international purchases. Key markets were Europe - that rose by over 9 percent, and the combined Asia/Pacific, Middle East and Africa regions also rose by over 9 percent. Diane King, Reuters, New York
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Added: Jun 10, 2008 |
| Category: Business |
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