rssWhat Were Lehman Officials Really Thinking?
Tuesday, October 07, 2008 at 12:44 pm
- 4 Comments
Lehman Bros. CEO Richard Fuld, in a written statement for the House oversight committee, portrays himself as a victim of mortgage-market forces beyond his control. Fuld writes, “What happened to Lehman Bros. [which could have been one of the largest bankruptcies in U.S. history] could have happened to any firm on Wall Street and almost did happen to others.”
Yet, according to yesterday’s Wall Street Journal, Fuld gave investors a confident assessment about Lehman’s financial health during a Sept. 10 conference call — five days before the investment bank sought Chapter 11 bankruptcy protection. That led Rep. Paul Sarbanes (D-Md.) to remark at yesterday’s oversight hearing that Fuld seems to have been either naive or deceptive.
Lehman documents handed over to the committee suggest a little of both.
One undated internal memorandum, written some time in the past six months, amounts to an eight-page, bullet-pointed pep talk describing how Lehman can regain its discipline and focus.
Titled “What Happened & Why,” the memo asks such questions as “Why did we allow ourselves to be exposed?” and is the “business model broken?”
It does provide answers similar to what Fuld said publicly before Lehman filed for bankruptcy protection: that the business model was fine and that crises are a “feature of financial markets.”
Through “intellectual capital” and “drive,” the memo said, Lehman will emerge better than ever through this “Darwinian process.”
The Darwinian process, of course, devoured Lehman. But judging from this memo, it looks as if Fuld was able to convince himself that the investment bank could recover. And, as he testified yesterday, he never sold his company stock.
The consequence of his misplaced confidence may have been the next phase of the now emerging global financial crisis.
4 Comments
Comment posted October 7, 2008 @ 11:53 am
A NEEDED FIX IN ALL BOARD ROOMS
Isn't it time the system went in for some much needed repair?
Due diligence and oversight long ago slid out the window. No one was watching.
Time to do something about it.
Here's a huge one they all missed…. The dramatic change that swept through all of North America's boardrooms over the past 30 years. It is one of the underlying causes of the headache the economy is now feeling, but more importantly, it has resulted in the general feeling of “disconnect” by most Americans.
“WE THE SHAREHOLDERS OF YOUR COMPANIES……
http://pacificgatepost.blogspot.com/2008/03/let…
Comment posted October 7, 2008 @ 3:37 pm
THIS STRATEGY WILL HELP THE FANNIE MAE CROOKS TO AVOID PRISON TIME.
THE BAIL OUT CRISIS WAS CAUSED BY A HANDFUL OF CORRUPT CONGRESSMEN AND FANNIE MAE OFFICIALS. THEY BOUGHT UP 4 TRILLION DOLLARS IN BAD DEBT IN ORDER TO PAD THE BOOKS AT FANNIE MAE AND COLLECT HUNDREDS OF MILLIONS OF DOLLARS IN SALARY BONUSES FOR THEMSELVES. THEY TOOK THEIR MONEY AND LEFT THE AMERICAN TAXPAYER HOLDING THE BAG.
HERE ARE THREE VIDEOS THOSE CORRUPT FANNIE MAE OFFICIALS & AT LEAST FIVE CORRUPT CONGRESSMEN DON’T WANT THE AMERICAN
PEOPLE TO SEE:
http://www.youtube.com/user/TheMouthPeace
http://www.youtube.com/watch?v=_MGT_cSi7Rs
http://www.youtube.com/watch?v=q2WKtp01yOw
One Of The Crooks Will Probably Be The Next Attorney General Under Obama. If That Happens, NONE of them will ever
be brought to justice.
http://www.wnd.com/index.php?pageId=67068
What We Saw Today Was Just A Smokescreen Designed To Hide The Real Crooks In This Mess Including Dodd, Frank, Goerlick, Mudd, Obama, Raines and Johnson. And From The Looks Of Things Today, Waxman Is Going To Head The Cover Up.
Comment posted October 7, 2008 @ 6:53 pm
A NEEDED FIX IN ALL BOARD ROOMS
Isn't it time the system went in for some much needed repair?
Due diligence and oversight long ago slid out the window. No one was watching.
Time to do something about it.
Here's a huge one they all missed…. The dramatic change that swept through all of North America's boardrooms over the past 30 years. It is one of the underlying causes of the headache the economy is now feeling, but more importantly, it has resulted in the general feeling of “disconnect” by most Americans.
“WE THE SHAREHOLDERS OF YOUR COMPANIES……
http://pacificgatepost.blogspot.com/2008/03/let…
Comment posted October 7, 2008 @ 10:37 pm
THIS STRATEGY WILL HELP THE FANNIE MAE CROOKS TO AVOID PRISON TIME.
THE BAIL OUT CRISIS WAS CAUSED BY A HANDFUL OF CORRUPT CONGRESSMEN AND FANNIE MAE OFFICIALS. THEY BOUGHT UP 4 TRILLION DOLLARS IN BAD DEBT IN ORDER TO PAD THE BOOKS AT FANNIE MAE AND COLLECT HUNDREDS OF MILLIONS OF DOLLARS IN SALARY BONUSES FOR THEMSELVES. THEY TOOK THEIR MONEY AND LEFT THE AMERICAN TAXPAYER HOLDING THE BAG.
HERE ARE THREE VIDEOS THOSE CORRUPT FANNIE MAE OFFICIALS & AT LEAST FIVE CORRUPT CONGRESSMEN DON’T WANT THE AMERICAN
PEOPLE TO SEE:
http://www.youtube.com/user/TheMouthPeace
http://www.youtube.com/watch?v=_MGT_cSi7Rs
http://www.youtube.com/watch?v=q2WKtp01yOw
One Of The Crooks Will Probably Be The Next Attorney General Under Obama. If That Happens, NONE of them will ever
be brought to justice.
http://www.wnd.com/index.php?pageId=67068
What We Saw Today Was Just A Smokescreen Designed To Hide The Real Crooks In This Mess Including Dodd, Frank, Goerlick, Mudd, Obama, Raines and Johnson. And From The Looks Of Things Today, Waxman Is Going To Head The Cover Up.
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