Speculation was heavy that Lehman might make some sort of early earnings announcement, and the embattled firm did just that, confirming Monday many predictions that it would lose money for the first time since it went public. It announced it will lose $2.8 billion in the second quarter, largely a result of sluggish bond operations. It also announced it will raise up to $6 billion in capital, which is more than most expected. Also, the firm will raise the capital via common and preferred share offerings--another surprise. Many were expecting a deal with a sovereign wealth fund, a private equity fund or some other investor. You have to wonder what sort of roadblocks it ran into on that front. The firm has made some recent progress by delivering and cutting exposure to various assets. The announcement was intended, no doubt, as something of a knock-out blow to short sellers. We'll see how they take the punch.

For more:
- here's the announcement

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