Lehman Expects $2.8B Loss in Fiscal 2Q

Lehman Brothers expects to see a net loss of $2.8 billion in its fiscal second quarter (which included the extreme market dislocation seen in March) but says it was able to make progress in reducing troubled residential and commercial mortgage exposures during the quarter. The company also estimates that it will take a $3.7 billion net loss for mark-to-market adjustments on partially mortgage-related holdings for the quarter ended May 31. Chairman and chief executive Richard Fuld said he was "disappointed" by the company's expected first-ever quarterly net loss, but added that he was heartened by Lehman's "strengthened balance sheet and the improvement in financial markets since March." Lehman Brothers can be found on the Web at http://www.lehman.com.