Lehman Raising $6B In Capital, Expects $2.8B Loss

WNYC News | Jul 12, 2010

New York, NY —

Lehman Brothers is taking a nearly $3 billion loss in its latest quarterly report, and it's had to raise $6 billion in fresh capital to ensure its survival. The news confirms fears on Wall Street that the credit crunch isn't over yet.

But Lehman appears to be in better shape than Bear Stearns, which nearly filed for bankruptcy, and with help from the feds was gobbled up by JP Morgan Chase.

Kathryn Wylde is the president of the pro-business Partnership for New York City.

WYLDE: What's important to point out is Lehman Brothers is a very strong a prudently run institution. They've been caught up in a problem and seem to have solved it.

REPORTER: Wylde says New York City can expect more losses in the financial sector, but she also predicts a rebound.

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