In an announcement that was moved up because of market concerns, Lehman Bros. said it expected to lose $3.9 billion in the third quarter. Chairman and Chief Executive Officer Richard S. Fuld Jr. called the current credit crunch "one of the toughest periods in the firm's history." Lehman plans to spin off $25 billion to $30 billion of its commercial mortgages into a new public company and said it is considering "all strategic alternatives."

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