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Once again, in the early 2007, Lehman, as an active participant in the subprime mortgage industry, for the three month period ended February 29, 2007, reported on SEC Form 10-Q, that its revenue had decreased more than 52%, as the company suffered from the “continued deterioration in the broader credit markets, in particular residential mortgages, commercial mortgages and acquisition finance.”
In fact, prior to the release of the results of operations for the Lehman’s quarter ended February 29, 2008, it was widely anticipated, and widely reported on Bloomberg News and in the Financial Times, that Lehman was expected to lose up to $700 million dollars on its hedging positions. On June 9, 2008, Lehman reported a net loss of $2.8 billion.
On September 15, 2008, Lehman filed a voluntary petition to reorganize under Chapter 11 of the Federal Bankruptcy Code. As of that date, the preferred securities of Lehman Holdings are substantially worthless and unusable.
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