Lehman Share Plunge Hurts Stocks
Shares of Lehman Brothers Holdings Inc. (LEH) fell 44% Tuesday as investors
worried the struggling investment bank wouldn’t be able to raise needed capital.
The stock was recently at $7.92, down $6.20, after reaching a new low of
$7.84.
Korean regulators dashed hopes early Tuesday that South Korea’s government-
owned Korea Development Bank will invest in Lehman. Regulators said
talks between the two parties had ended.
A spokesman for Lehman declined to comment on the stock price decline or
Korea Development Bank.
In addition, Standard & Poor’s Ratings Service Tuesday said it had placed
Lehman’s single-A credit rating on CreditWatch with “negative implications.”
The rating agency cited “heightened uncertainty about Lehman’s ability to
raise additional capital, based on the precipitous decline in its share price in
recent days.”
By: Scottrade
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