Beleaguered Wall Street firm Lehman Brothers sank in Thursday morning trading some 40 percent to $4.38 per share, representing a shrunken market capitalisation of roughly $3 billion (€2.15 billion).
The trading marks the first time that Lehman Brothers has had a smaller market capitalisation than The Blackstone Group, a firm founded by two of its most famous alumni – Stephen Schwarzman and Peter Peterson.
Although its own shares are near historic lows, Blackstone at press time had a market capitalisation of approximately $4 billion.
Movement in the share prices of both companies has been highly volatile.
Blackstone was founded in 1985 following a power struggle among senior Lehman partners. Lehman Brothers was eventually sold to Shearson American Express.
Schwarzman and Peterson were, respectively, a managing director and chairman and chief executive of Lehman Brothers. Schwarzman became the global head of Lehman’s investment banking business.