Many investors are continuing to bet heavily against Lehman Brothers, lifting the percentage of the bank’s shares sold short to a record level, reports the FT. The value of the bank has nearly halved in the past year amid concern about its finances. It is expected this month to announce a significant quarterly loss, including $500m-$700m on failed hedging positions. Short interest in Lehman has been rising since late last year and spiked sharply in the past two months to 13%, indicating that many other short sellers have piled in. Bloomberg meanwhile reports that a US government official said Lehman is under no pressure from the Fed or SEC to boost capital.
