According to the report, during the Q2 '08, along with reducing real estate exposure to mortgages, the firm further strengthened its liquidity and capital position by the following. The firm grew the Holding Co. liquidity pool to $45 billion from $34 billion at the end of the prior quarter. The Firm reported gross assets and net assets of approximately $639 billion and $327 billion, respectively, which decreased approximately $147 billion and $70 billion, respectively, from the first quarter of fiscal 2008. It reduced acquisition finance exposures by approximately 35%. It also reduced aggregate non-investment grade inventory--including funded acquisition finance assets--by approximately 20%. Lehman also completed the budgeted full year fiscal 2008 unsecured funding plan and increased its long-term capital through the issuance of $4 billion of convertible preferred stock in April and approximately $5.5 billion of public benchmark long-term debt.

Chairman and CEO Richard Fuld Jr. says in the report that the firm has begin to "take the necessary steps to restore the credibility of our great franchise and ensure that this quarter's unacceptable performance is not repeated." Fuld further notes that Bart McDade, will serve as the firm's president and COO and that Ian Lowitt, will be CFO. "With these actions and our continued commitment to our client-driven franchise, we are positioned to take advantage of opportunities that lie ahead, and we are focused on maximizing shareholder value."

Lehman sources were unable to provide further information by deadline. When asked about further details related to real estate, a company spokesperson said that the company isn't "commenting at the moment the focus placed on any specific business."