Despite record second-quarter losses at Lehman Brothers Holdings Inc., BlackRock Inc. purchased some Lehman Brothers shares in a secondary offering this week, according to news reports.
It was not disclosed how much BlackRock is investing in Lehman Brothers, both of which are based in New York, but BlackRock president Robert Kapito told Bloomberg he is confident Lehman Brothers can get past recent financial struggles stemming from the credit crunch.
"[Lehman has] a history of being a team, a place of focus, of working out their situations, of having confidence in the marketplace,” he said.
After projecting a record second-quarter earnings loss of $2.8 billion on Monday, Lehman Brothers announced plans to raise $6 billion through a stock sale (InvestmentNews June 9).
BlackRock chairman and chief executive Laurence Fink told CNBC yesterday that his firm was one of the investors in Lehman’s equity offering and said he is urging clients to take “systematic risks” with similar financial services firms.
A call to BlackRock’s press office was not immediately returned. A Lehman Brothers spokeswoman declined to comment.
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