The investment bank also said that it would spin off the majority of its remaining commercial real estate holdings into a new public company. And it confirmed plans to sell a majority of its investment management division in a move that it expects to generate $3 billion.
The announcements come after Lehman's stock lost nearly half its value on Tuesday as investors feared it was running out of options to raise capital and shore up its ailing balance sheet. Shares in Lehman, a major underwriter of mortgage-related securities during the credit boom, are down more than 90 percent since hitting their peak last year before the subprime mortgage crisis.
Lehman said Wednesday that it hoped to complete the spinoff of around $32 billion in commercial mortgage assets by early next year.