Updated from 9:23 a.m. EDT

Lehman Brothers

(LEH)

shares were free falling again in early trading Thursday, as the reeling investment bank failed to impress analysts the day before in shoring up its balance sheet.

Goldman Sachs, Oppenheimer & Co., Banc of America Securities and Citigroup all downgraded

Lehman

, a day after the firm set plans to sell a majority stake in its asset-management business, spin off its commercial real-estate assets into a new publicly traded company and cut its annual dividend to 5 cents a share from 68 cents.

"Management did not successfully put to rest the issues that had been pressuring the stock," Goldman analyst William Tanona wrote.

Lehman shares were recently down 41% to $4.38 on the New York Stock Exchange, signaling it was well on its way to a fourth straight day of losses. The stock closed trading at $16.20 on Sept. 5, and the shares are off 90% from their 52-week high.

Cramer: Lehman's Not Done Falling

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Fears that Lehman could suffer the fate of

Bear Stearns

-- which federal officials forced to sell itself at a cut rate $10 per share to

JPMorgan Chase

(JPM) - Get Report

in March -- have been behind the selloff. Like Bear, Lehman's fortunes are strongly connected to the real estate and fixed income markets, which has been at the center of the current economic crisis.

Brad Hintz, analyst with Sanford Bernstein, believes those fears are significantly lessened by the fact that Lehman has the ability to borrow funds from the

Federal Reserve

, which Bear did not. The Fed gave investment banks the ability to borrow directly from the federal government at a discount in March, shortly after JPMorgan agreed to acquire Bear.

"We'd be talking about a whole different story if the Fed hadn't stepped in

to provide access to cheap funding for investment banks," says, "We'd all be holding our breath."

However, noted bearish economist Nouriel Roubini tells

TheStreet.com

the Fed could, and should limit Lehman's access to the discount window, allowing creditors to take a hit.

"At this point, Lehman is toast," he says.

As far as Lehman's plan goes, many questions remain for shareholders. On a conference call Wednesday morning to discuss its preannouncement of third quarter results, hastily convened on a day's notice to calm investor fears, analysts seemed frustrated in trying to understand important details.

Tanona, for example, excused himself for asking the same question an earlier analyst had posed about the investment management stake sale. "I just don't understand how you guys can sell 55% yet retain the vast majority of the pre-tax income," he said.

Lehman has not reached a deal to sell the stake yet, but says it is "in advanced discussions with a number of potential partners."

The real estate spinoff will also require extensive negotiations with ratings agencies, auditors and law firms, over issues such as how much equity Lehman needs to put into the new company, and whether its valuations of the real estate are appropriate, according to Hintz.

Given those uncertainties, he is not recommending Lehman's stock.

"Of course not," he says. "It's a great time to buy Lehman bonds, with the credit spreads wide. The stock is a whole different issue."