Lehman 3Q Loss $3.9 Billion; Cuts Dividend

Lehman Brothers announced preliminary third-quarter results that include a loss of $3.9 billion, or $5.92 per share, and said it wants to sell a majority stake in its investment management division.

The bank will also spin off commercial real estate assets into a new, separate public company, leaving it with limited exposure to the sector. The move is expected to be completed next year, Lehman said in a statement.

Gross mark-to-market adjustments amounted to $7.8 billion in the third quarter, of which $5.3 billion were on residential mortgage-related positions, it said.

Lehman slashed its dividend to 5 cents from 68 cents. -EPJ Newsdesk