The Lehman Labyrinth was a Landmine that it’s CEO,Fuld stepped on and blasted
Lehman paid for it’s Ego and Arrogance….It had to Close because it consistently failed to Disclose
The Fall Guy has to be it’s CEO and Chairman,Richard Fuld….Poor Fellow…sold off 2.87 million Lehman shares on Wednedsay,September 17,2008 for just 20 cents/share realising US $ 639000…..just a year ago these were worth US $ 169 Million ! …He yet holds another half a million shares….but these have zero trading value as trading has ceased….maybe some auction value !…but the thorn in the eye is that this guy has made US $ 490 million in the fourteen years with Lehman by selling Options and Grants
It’s really ironic that Fuld was unable to see that Lehman was living in “Smokes and Mirrors” for Months when outsiders were crazily shorting the share
One Hedge Fund,Greenlight Capital walked away with US 3.1 Billion in gains because it’s Creator and Founder,David Einhorn kept on shorting Lehman from US $ 60 in November 2007…..he repeatedly challenged Fuld to disclose the real exposure to mortgage related bonds….In June 2008 Einhorn sarcastically commented on CNBC that Fuld had rasied US $ 6 billion…money he had earlier stated Lehman did not need…..to fund Losses that he had stated he did not have !
I have also read Fuld’s letter to Warren Buffett inviting him to Invest in Lehman in these difficult times….Not once in the letter is there any apology for the irresponsible behaviour of Lehman and the significant overleverage that made Risk Unmanageble and led to the Losses…The Guy is begging Buffett but as an arrogant CEO,tempting him with an immediate 25% gain in share price once he committed…Pathetic really…all he should have done is said “Buffett, these are my numbers…Can you save us ?…..Buffett had rejected a similar Invitation months ago and did the same this time around too….Share a sad thought for those Investors who gave Lehman US $ 6 Billion a few months ago !
Fuld will realise now what he has really done!….over 25000 Employees have lost their job….US Taxpayers Monies in Billions of Dollars are being spend to clean up Lehman’s Mess…By exposing Lehman,Fuld has exposed himself to legal action….he’ll need every million to defend himself.
Merill Lynch saw the writing on the wall and quietly accepted a US $ 50 billion bid from Bank of America…Morgan has just announced that Mitsubishi Fund will take a 20% stake in it…Goldman Sachs and Morgan will convert to Holding Companies from Investment Banks