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NEW YORK (AP) - Lehman Brothers Holdings Inc., the nation's fourth-largest investment bank, said Tuesday robust stock trading and buyout business pushed second-quarter profit up 27 percent, in what may be a harbinger for other brokerage earnings due this week.
Gains from stock trading amid a record run on Wall Street, as well as fees charged to companies for advice on takeover deals, helped drive Lehman's business during the quarter. This tempered a slump in its fixed-income business, particularly from the sagging performance of mortgage-back securities hurt by a squeeze in subprime loans.
This bodes well for other Wall Street firms — Goldman Sachs Group Inc. and Bear Stearns Cos. post results on Thursday. They are expected to show that sharp international growth, trading and investment banking offset any weak areas — a key as financial institutions face the possibility that interest rates will not fall this year.
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