Lehman Brothers announce $3.9 billion loss

NEW YORK, Sept. 10 (UPI) -- Lehman Brothers Holdings announced $3.9 billion in third-quarter losses and said it would sell a majority stake in a prime asset.

Lehman Brothers stock prices fell nearly 45 percent Tuesday after news that its efforts to raise cash through the Korean Development Bank had failed.

Jun Kwang-woo, chairman of the South Korean Financial Services Commission, had scratched out the deal when he told the K.D.B. "it would be inappropriate for a state-owned company to pursue such an acquisition at this time."

On Tuesday, as share prices fell, rating agency Standard and Poor's said it was considering cutting one of Lehman Brothers' primary credit ratings, The New York Times reported.

Many expect a government bailout, such as one provided to investment bank Bear Stearns in March, wouldn't be forthcoming.

"Some may worry that Treasury has taken on so much taxpayer burden they don't have any remaining capacity more to take on the burdens of Lehman," David Trone, an analyst at Fox-Pitt Kelton told the Times.

The company has set Friday as the deadline for bids for its prized investment management division.