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| Investor fears hit Lehman shares | Investor fears hit Lehman shares |
| (41 minutes later) | |
| Shares in troubled US bank Lehman Brothers have plunged again on concerns over the future of the bank. | Shares in troubled US bank Lehman Brothers have plunged again on concerns over the future of the bank. |
| Lehman announced the biggest loss in its history on Wednesday and investors remain unconvinced by the bank's plans to strengthen its finances. | Lehman announced the biggest loss in its history on Wednesday and investors remain unconvinced by the bank's plans to strengthen its finances. |
| One analyst said the firm was "limping along" and "may or may not make it". | One analyst said the firm was "limping along" and "may or may not make it". |
| Lehman's shares fell 40% to $4.30 and have lost 76% since Monday. The value of other financial firms has also been affected by the nervousness. | Lehman's shares fell 40% to $4.30 and have lost 76% since Monday. The value of other financial firms has also been affected by the nervousness. |
| Shares in mortgage lender Washington Mutual, for example, fell more than 20%. | Shares in mortgage lender Washington Mutual, for example, fell more than 20%. |
| "We thought that getting news out of Lehman was going to clear the dark cloud but it really doesn't," said Arthur Hogan, chief market analyst at Jeffries. | "We thought that getting news out of Lehman was going to clear the dark cloud but it really doesn't," said Arthur Hogan, chief market analyst at Jeffries. |
| "It just leaves us with a company that's limping along, that may or may not make it," he added. | "It just leaves us with a company that's limping along, that may or may not make it," he added. |
| The company's shares are down more than 94% from their 52-weekhigh of $67.73 in November 2007. | |
| "As much as they try to... calm investors down, investors don't have yet the answers they need," said Rose Grant, managing director of Eastern Investment Advisors. | |
| "There's a complete lack of faith, lack of confidence and lack of trust." | |
| Lehman has lost billions of dollars through its badly judged bets on the growth of US sub-prime mortgages - a market that began to crumble last year. | Lehman has lost billions of dollars through its badly judged bets on the growth of US sub-prime mortgages - a market that began to crumble last year. |
| Finance is a confidence game Andrew Busch, BMO Capital Markets | Finance is a confidence game Andrew Busch, BMO Capital Markets |
| The Wall Street bank said on Wednesday it made a loss of $3.9bn (£2.2bn) between June and August, taking its losses this year to $6.6bn. | The Wall Street bank said on Wednesday it made a loss of $3.9bn (£2.2bn) between June and August, taking its losses this year to $6.6bn. |
| To shore up its weak financial position, it has slashed its dividend and will sell a stake in its lucrative fund management arm. | To shore up its weak financial position, it has slashed its dividend and will sell a stake in its lucrative fund management arm. |
| It will also reduce its exposure to residential mortgages and spin off its commercial real estate business as part of the shake-up. | It will also reduce its exposure to residential mortgages and spin off its commercial real estate business as part of the shake-up. |
| But investors were not convinced that Lehman would be able to pull off the deals and raise the money it needs to plug its losses. | But investors were not convinced that Lehman would be able to pull off the deals and raise the money it needs to plug its losses. |
| "Finance is a confidence game," said Andrew Busch, analyst at BMO Capital Markets. | "Finance is a confidence game," said Andrew Busch, analyst at BMO Capital Markets. |
| "Once it's gone, the critical function of being able to trade with other financial entities becomes difficult and expensive," he added. | "Once it's gone, the critical function of being able to trade with other financial entities becomes difficult and expensive," he added. |