Updates From Lehman Brothers (LEH) Conference Call

-Lehman (NYSE: LEH) spinning off commercial real estate division to a new public company, REI Global. This allows Lehman to sell assets over time, instead of in a fire-sale. This portfolio will include the Archstone properties.
-REI Global will not be forced to sell assets below what REI Global thinks the intrinsic value is of the property.
-Current priced assets are priced to expect a large deterioration in housing
-Lehman's real estate assets and acquisition financing have been reduced from $89 billion to $30-$35 billion
-Lehman Brothers sees a Q3 loss of $3.9 billion
-In advanced discussions for sale of IMD business
-Cuts residential mortgage exposure
-Q3 gross net mark to market adjustments $5.6 billion
-Lehman had $800 million in hedging gains in the quarter

Lehman Brothers Holdings Inc. serves the financial needs of corporations, governments and municipalities, institutional clients and high-net-worth individuals worldwide.

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