Lehman profits push hiring drive

Wall Street firms are enjoying richer times as markets have perked up

US investment bank Lehman Brothers is looking to recruit an extra 2,000 staff after a strong rise in profits.

The Wall Street giant said high levels of corporate activity and growth in investment operations means it now needs to boost its workforce by 10%.

Lehman made a second quarter pre-tax profit of $1.49bn (£808m), compared with $1.01bn (£547m) last year.

Despite the strong results, Lehman's shares fell sharply on concerns that its profit growth may have peaked.

Its shares were down $2.98 at $62.63 by lunchtime in New York.

Balanced business

Wall Street banks have been enjoying a resurgence in profit growth as stock markets have rebounded from record lows, and merger and acquisition activity has picked.

Lehman's latest earnings figures marked only a small decline from its record $1.5bn first-quarter profit and all areas of the business enjoyed fulsome growth in the three months to the end of May.

Revenues from capital markets activities - including support provided for company flotations - rose 38% to $3.1bn.

Investment banking - including equity underwriting and merger and acquisition advice - contributed $741m, 28% higher than last year.

Lehman Brothers currently employs about 23,000 staff.