Lehman Brothers helped ease concerns about the impact of the credit squeeze on bank earnings on Tuesday when it reported better-than-expected Q3 results and predicted the worst of the market turmoil was over. Lehman shares, down about 30% since February, rose 10% in New York trade to $64.49, aided by news of the Fed’s 50bp rate cut. Lehman earned $887m, or $1.54 per share, in the quarter, down 3% from last year. Analysts had forecast $1.47 per share. Strength in equities, investment banking and asset management helped offset difficulties in fixed income. So where’s the blood on the street?, asks Lex. Although the broker-dealer is not yet out of the woods, its Q3 report has set the bar high. Follow other key bank results this week on FT Alphaville, see our guide to Crunch Week.

This entry was posted by Gwen Robinson on Wednesday, September 19th, 2007 at 5:44 and is filed under Capital markets. Tagged with Lehman Brothers. Edit this entry.