Pending Home Sales & Lehman Bailout

Pending Home Sales Apr +6.3% vs -1.0% Full Report

Inside the number: Yoy -13.1%; YTD -13.8%

Lehman Brothers, #4 US securities firm...

expects a massive $2.8 billion Q2 loss and plans to raise $6.0 billion in new capital in common and preferred stock offerings.

The $4.0 billion common stock offering was priced at $28 per share, a 13% discount to Friday's closing price.

The firm also priced a $2.0 billion public offering of 2 million shares of 8.75% noncumulative mandatory convertible preferred stock.

In an attempt to get things under control, Lehman unloaded about $130 billion of holdings during the quarter.

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