Shares of European banks trading in the U.S. fell Monday like their stateside counterparts, after Lehman Brothers Holdings Inc. forecast a large second-quarter loss, and said it will raise $6 billion in cash by selling more stock.
Lehman Brothers said it expects to report a loss of $2.87 billion for the quarter ended May 31, as the bank had to write down the value of investments in mortgage-backed securities and lost money on ineffective hedging strategies.
The move showed the continued and widespread effects of the credit crisis, and knocked American Depositary Receipts of several banks to their lowest prices in years.
Allied Irish Banks PLC fell $1.09, or 2.9 percent, to $36.88. Shares earlier bottomed out $36.80, their lowest value since November 2004.
Credit Suisse Group lost $1.48, or 3 percent, to $47.51.
Deutsche Bank AG gave up $2.74, or 2.7 percent, to $97.33, after earlier reaching a two-year low of $97.09.
UBS AG shed 92 cents, or 3.9 percent, to $22.99.
Barclays Group PLC declined $1.30, or 4.9 percent, to $25.13, and hit a five-year low of $24.97.
Lloyds TSB Group PLC sank 82 cents, or 2.8 percent, to $28.04, reaching a four-year low at $27.92 earlier in the session.
American Depositary Receipts, or ADRs, are securities that allow U.S. investors to trade shares of companies based overseas.
In afternoon trading, the Bank of New York Europe ADR index slipped 1.32 points to 168.73.
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