Sunday, June 8, 2008

Lehman Bumps Up Earnings Call

Lehman Brothers might release earnings this week -- earlier than its regular schedule -- in an attempt to stem the tide of speculation about the quality of its balance sheet. Lehman officials spent much of last week publicly quantifying its cash and liquid reserves in hopes of calming investors and trading partners. Even if investors aren't going to like the news about earnings and the need to raise capital, it's about time Lehman gave the market more insight into the scope of writedowns and its plan to catch up to other banks in writing down assets. The decision to release early leads me to believe that Lehman realizes that Bear Stearns was prepared to announce strong earnings two days after it was bailed out by JP Morgan.

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