Leyman Bros is one of the top invest banking companies in USA, is in trouble. The sub-prime mortgage crisis has affected the company which is a major underwriter of mortgage related securities. The company is expecting a loss of US$3.9 billion in the third quarter of this year. Not a big deal for the investment company like the Leyman Bros.
Some of the strategic moves planned by the company are: cut its annual dividend to 5 cents a share, sell a majority of its investment management division, complete the spin-off of the majority of its remaining commercial real estate holdings into a new public company, complete the spin-off of around $32 billion in commercial mortgage assets by early next year, etc.
The Chief Executive says that this is a temporary setback and all the strategic alternatives announced will bring the company back into its well-deserved position of a profit making company, to maximize the shareholder value. Best of luck Richard.
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