Lehman loss confirms Wall Street’s deep troubles

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New York, Sep 13: basis, highlighting the cyclical slowdown that all of the large-cap brokerage firms will face,” Oppenheimer analyst Meredith Whitney said in a recent note.

Across the board, the engines that powered years of record profit are sputtering. Global debt underwriting slumped by half to $2.7 trillion, in the year ended August 31, compared with the previous year. That figure reflects the steep plunge in mortgage activity, with $140 billion of mortgage backed debt issued during this period, compared with $900 billion the year earlier.

Results elsewhere on Wall Street were not much better. Global equity underwriting fell by more than half, while the dollar value of announced mergers and acquisitions worldwide is down 20% and completed M&A fell 58%.