Lehman, WaMu tumble at market open on capital fear

NEW YORK (Reuters) - Shares of Lehman Brothers LEH.N and Washington Mutual WM.N both fell heavily as the market opened on Thursday as concern about the health of the financial sector continued to build on Wall Street.

Lehman shares were down 41 percent at $4.32 a day after the bank disappointed investors by failing to announced any definitive deals to raise desperately needed capital. Goldman Sachs, according to theflyonthewall.com, cut its Lehman rating from "buy" to "neutral."

Shares of Washington Mutual, the biggest U.S. savings and loan, were down 19 percent at $1.88, also on fear that the company would not be able to attract a buyer or raise enough money to cover soaring mortgage losses.

(Reporting by Steven C. Johnson; Editing by James Dalgleish)