The Bank displays a banking net product GNP of 2

Lehman Brothers staff reacted quickly after the spectacular collapse of its title Tuesday, which plunged 45 percent in one day. The next day morning, with eight days in advance, the Bank unveiled its preliminary results for the third quarter, which resulted in a net loss of $ 3.9 billion. It provides also assign 55 per cent of its most valuable asset, its management (IMD) branch, and split ("spin off") the most problematic: commercial real estate. Finally, the dividend is reduced to $ 0.05 to save $ 450 million. As a result of these emergency measures, held respectively in the fourth quarter 2008 and first quarter of 2009, "we will have a clean balance sheet and strong will allow us to serve our customers," said Richard Fuld, the CEO of Lehman Brothers." "We remain determined to examine the strategic opportunities". The financial rating agency Moody's has threatened yesterday evening fall of several notches the note of the Bank of business if it cannot quickly find a partner.

Washington Mutual Rectifier

Market players were disappointed to not see enter a partner in the capital which brings stability and liquidity. "Wall Street wanted the capital and certainty, he does them not had", noted Anton Shutz, Bernham Asset Management, on CNBC. The title however was 5.78 in session. Attention is focused on Washington Mutual, whose action was reduced by more than 20 on fears of mortgage write-downs.

The actions announced today are perhaps the basis to achieve this more later. The Bank will retrieve of capital through the sale of the majority participation of IMD, which should enhance the own funds of the Bank 3 billion. The negotiations were conducted with several investors and could be concluded "very soon".

The sale of British residential real estate investment fund BlackRock portfolio should also provide funds. Similarly, the creation of an independent company which will be grouped together all the assets of the commercial real estate, which will be listed on the stock exchange and the securities will be held by the shareholders of the Lehman Brothers Bank, will reduce the leverage and the risk of this asset class.

In the new structure, which will be known as "REI Global", they will be kept until maturity and more weigh on the Bank's balance sheet. It is going to transfer between 25 and 30 billion of commercial real estate assets. The total amount of this category of assets amounted to $ 32.6 billion, or 18 less than the previous quarter, and the Bank will retain its record $ 5 billion.

Two unknowns remain

Term, the new entity, which will be capitalized through the transfer of own funds and debt, can generate "5 billion of cash over the next three years", said the Financial Director. The Bank will maintain 13.2 billion in residential real estate on its balance sheet by excluding the $ 4 billion that will be assigned to BlackRock.

The negative results of the third quarter are due to the sale and depreciation of real estate assets ($7.8 billion) so that a more difficult overall environment that has been a loss of $ 760 million (380 million for the "fixed income", 320 million for shares and 60 million for IMD markets). The Bank displays a banking net product (GNP) of $ 2.9 billion negative.

In the future, Lehman Brothers intends to focus on its traditional activities, its intellectual capital (including its research teams) and increase its deposits, said Richard Fuld. "It can easily generate 13 billion in annual revenues," said the CEO.

Two unknowns remain. On the one hand, are these measures sufficient to ensure that the Bank maintains its independence while drawing a shareholder of weight Then, can Richard Fuld long persuaded its Board of Directors that he is the man for the job