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Banking, finance, and taxes

Lehman (LEH) To Drop 6% Of Work Force, Not Enough

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By Douglas A. McIntyre Updated Published
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Lehman_brothersLehman (LEH) will lay off about 6% of its work force according to The New York Times. That is about 1,500 people, but it is not nearly enough.

Earlier in the day an analyst from Fox-Pitt Kelton said that Lehman would be one of three firms which would "together write-down $6.1 billion on their "problem assets" across leveraged loans, and commercial and residential mortgages." The other two companies are Goldman Sachs (GS) and Morgan Stanley (MS).

If a large portion of these write-downs comes at Lehman and its money management arm Neuberger Berman has not been sold, the brokerage will need to bring in more money, even if the deal has to be done below market. There is no sign among the company’s investors or comment in the analyst community that says Lehman’s troubles are going to end soon.

Lehman will have to do much more than let go a small portion of its staff. It needs to raise $5 billion quickly.

Douglas A. McIntyre

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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