WASHINGTON — The woes of the real estate market took their toll on investment banking giant Lehman Brothers Holdings today when the firm announced it would sell most of its commercial real estate holdings and 31% of its residential holdings.
Lehman Brothers, the nation's largest underwriter of mortgage-backed bonds and fourth-largest securities firm, projected that its third-quarter loss will be $3.9 billion. The company plans to drop its annual dividend from 68 cents per share to 5 cents. It is the 37th largest company on the Fortune 500.
The firm also plans to sell the majority of its investment management division. It also intends to sell $4 billion of its commercial real estate holdings and spin off another $25 billion to $30 billion worth of holdings into a separate publicly traded company early next year.
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