Toomre Capital Markets LLC

On the morning of Monday June 9^th 2008, Lehman Brothers pre-announced their second quarter earnings report and gave limited details on their capital raise efforts. [A link to the press release can be found here.] The numbers are larger than what Toomre Capital Markets LLC ("TCM") wrote about last night in the post Lehman Brothers Said to Lose $2 Billion Plus in Second Quarter. Lehman Brothers now expects to lose $2.8 billion for the period ended May 31^st 2008 as well as raising close to $6 billion through a combined common stock and preferred offering.

Partly as a result of this announcement, Moody's Investors Service has put the ratings of Lehman Brothers under review for a likely downgrade. Lehman Brothers will be conducting a 10 AM conference call to discuss further this press release. From the press release, it appears that the fixed-income division had a net loss of approximately $5 billion, which is much larger than the losses that Lehman Brothers has announced in prior quarters.

Lehman Brothers in the past months has pledged to increase its transparency regarding its financial transparency. It certainly will be quite interesting to learn more about where these losses came from. Toomre Capital Markets LLC will post more about this company later in the day as further information becomes available.