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Thursday, July 19, 2007

Lehman Brothers Says Subprime Speculation `Unfounded'

" Lehman Brothers Holdings Inc., the largest underwriter of U.S. mortgage bonds, denied speculation that it may face greater potential losses from subprime mortgages than previously disclosed.

Speculation about a planned announcement from Lehman related to its subprime holdings spurred investors to demand higher premiums to insure against the risk of owning Wall Street firms' bonds and helped prompt gains in Treasuries, according to traders including Thomas Tucci, head of U.S. government bond trading at RBC Capital Markets in New York.

"The rumors related to subprime exposure are unfounded,'' Lehman spokeswoman Kerrie Cohen said today. "

Source: Lehman Brothers Says Subprime Speculation `Unfounded' (Update1) (