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Credibility Issues Haunt Lehman

Posted on June 10, 2008

Lehman's has made some extremely large property bets right at the tip of the commercial real estate bubble. Those bets are now going sour. Let's pick up the story from the WSJ article Lehman's Property Bets Are Coming Back to Bite.The stunning $2.8 billion second-quarter loss Lehman Brothers Holdings Inc. announced Monday stemmed in part from two big real-estate investments made at high prices near the top of the market that are coming back to bite the investment bank.Lehman joined with Tishman Speyer Properties last year to pay $22 billion for real-estate investment trust Archstone-Smith in ...

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real estate , real estate bubble