We have a bit more clarity on the Lehman Brothers situation now that it has released preliminary third-quarter earnings and a peek at capital raising activity. The firm says it will sell a 55 percent stake in its asset management, private equity and wealth management. It will retain its hedge fund stakes. This deal will raise book value by $3 billion, as goodwill from Neuberger Berman disappears. It also will retain the pre-tax income from these units. But there's no deal yet. We're not sure who the buyer is. Lehman also will spin off its commercial real estate assets to shareholders in the first quarter of 2009. The dividend will be cut, as well. Furthermore, the firm has a deal to sell some mortgage assets to a U.K. buyer. But will this be enough? The firm announced a preliminary loss in the $4 billion range. Revenues were more negative. It will write off about $7.8 billion, which is more than expected, but that was offset by $800 million in hedges and $1.4 million in write-ups. We'll see how people react.

For more:
- here's the release

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