Languishing Lehman
A timeline of events at Lehman Brothers since the beginning of the credit crisis.
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Chief Financial Officer Chris O'Meara steps down to head global risk management division. Erin Callan, head of the investment banking practice for hedge funds, succeeds him.
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Reports fiscal fourth-quarter profit of $870 million and full-year earnings of $4.2 billion.
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Lehman says it will stop originating mortgages through wholesale channels amid continued weakness in the housing and real estate markets.
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The federal government and JPMorgan Chase & Co. bail out Bear Stearns Cos. Analysts question whether other investment banks might also collapse.
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Reports suggest Southeast Asian bank DBS Group Holdings Ltd. instructed its traders to cease working with Lehman, though those instructions were later rescinded.
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Lehman announces it earned $489 million during its fiscal first quarter.
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Company raises $4 billion in capital.
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Speaking at the investment bank's annual shareholder meeting, Chairman and Chief Executive Richard Fuld tells investors that the worst of the credit crisis is behind Wall Street, but that the environment "will remain challenging."
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Lehman announces it is cutting 1,400 jobs, or about 5 percent of its work force.
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Company estimates it lost about $3 billion for the second quarter and that it is raising $6 billion in fresh capital.
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Removes Callan as CFO and Joseph Gregory as chief operating officer. Herbert McDade replaced Gregory, while Ian Lowitt replaced Callan.
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The New York Times reports Lehman is preparing to cut 1,500 jobs.
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Reports indicate state-owned Korea Development Bank was considering buying a 25 percent stake in Lehman.
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Shares of Lehman plunge 52 percent amid worries the investment bank was struggling to find new investors and raise capital. Reports say the talks with KDB have ended.
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Lehman says it lost $3.9 billion during its fiscal third quarter and plans a number of moves to shore up its balance sheet. The announcement, coming a day after Lehman shares lost 45 percent, is an attempt to assuage market worries. Fuld says the firm will consider all "strategic alternatives."
TimeLine: Credit Crunch
LINK: Eye On The Economy
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Lehman stock plunged 42 percent as the embattled investment bank tried to locate a suitor before more market value and confidence was lost. The stock is down more than 94 percent for the year.
TimeLine: Credit Crunch
LINK: Eye On The Economy
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Lehman Brothers, burdened by $60 billion in soured real-estate holdings, filed a Chapter 11 bankruptcy petition in U.S. Bankruptcy Court after attempts to rescue the 158-year-old firm failed.
TimeLine: Credit Crunch
LINK: Eye On The Economy
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Federal prosecutors investigating the collapse of Lehman Brothers subpoenaed several executives associated with the company, including former CEO Richard Fuld. An attorney for Lehman Brothers Holdings told a bankruptcy court judge that at least 12 people have received grand jury subpoenas in connection with several ongoing probes of the bank's demise.
TimeLine: Credit Crunch
LINK: Eye On The Economy
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Credits:
CBS/AP
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