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Lehman Reports $3 Billion in Losses Due to Bad Mortgage Investments

Lehman Brothers chief Richard Fuld took responsibility Monday for a staggering $3 billion in losses in the second quarter, saying the company was too slow to react to the unfolding credit and mortgage crisis. Roben Farzad of BusinessWeek magazine outlines how the news may affect Wall Street and Main Street.

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  • GWEN IFILL:

    Now, turmoil in the housing and credit market spells more trouble for Wall Street. Ray Suarez has that story.

  • RAY SUAREZ:

    The almost $3 billion loss by Lehman Brothers reported today was mostly due to an erosion in the value of the bank's mortgage investments.

    Today, Lehman's chief executive, Richard Fuld, said some of the investment decisions the company made "in hindsight were poor choices."