When seized by a panic attack, focus on breathing slowly and deeply. In response to a frenzied sell-off, Lehman Brothers dragged forwards its third quarter earnings release, hoping to buy itself a little respiratory space. It should suck in oxygen quickly. The new strategy, perhaps by virtue of its rushed publication, is incomplete. Plans to sell a majority stake in its investment management arm, spin off $25bn to $30bn of commercial real estate assets and reduce residential exposure further through a deal with Blackrock, remain just good intentions. Slashing the dividend to save $450m a year is at this point nothing more than a token gesture.

Even confirming these measures of last resort may not be enough to assuage investors' palpable fears - after this week's pummelling, the stock fell again yesterday. The price of insuring the bank's debt continued to rise. If Lehman secures a quick, well-priced sale of its asset management stake, it should generate a profit to offset the writedowns being taken against real estate assets to be spun off. The bidders, though, clearly have all the negotiating power. The prospect of further writedowns, and the need to capitalise "Spin Co" to the satisfaction of the ratings agencies, means further capital raising cannot be ruled out. Lehman will be debt-financing the new entity, and it has its own rating to think about.