Lehman Down 37.%

Near mid-day, Lehman Brother's stock was trading down $2.70 per share to $4.51, a decline of 37.79%.

Lehman bond prices fell, with bonds offering yields of 10 percent or more, a level that indicates traders now view the debt as high-yield.

Five-year credit default swaps on Lehman traded at 745 basis points on Thursday, or $745,000 a year to protect $10 million of debt, widening 165 basis points from Wednesday's close, Phoenix Partners Group told Reuters.

-EPJ Newsdesk