Updated from 2:51 p.m. EDT
is mulling a plan to raise as much as $4 billion as the firm sets to report its first quarterly loss in its history,
The Wall Street Journal
Lehman thus far has been regarded as one of the few investment banks to navigate the credit crisis without major damage, as it posted an
in the first quarter. Wall Street's outlook for the firm, however, has been dimming in recent months as continuing concerns about the residential mortgage market and construction loans mount.
Analysts expect a profit of 7 cents a share on revenue of $2.89 billion, according to a Thompson Reuters poll. The
, however, said the firm could lose more than $300 million.
The paper said the exact size of Lehman's expected capital raising was not known, but sources said it could be between $3 billion and $4 billion. The plan would likely be announced when the firm posts second-quarter results next month.
Lehman shares closed down 9.4% to $30.66 Tuesday.
Lehman shares have taken a beating in recent weeks. On Monday, the stock fell 7.5% to $33.83 after Standard & Poor's
Lehman, along with
S&P also lowered outlooks on
Bank of America
of Ladenburg Thalman and Meredith Whitney of Oppenheimer also cut their forecasts for the firm and other brokerages last month.
This article was written by a staff member of TheStreet.com.