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Lehman Brothers' Former Ceo Blames Bad Regulations For Bank's Collapse

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http://www.theguardian.com/business/2015/may/28/lehman-brothers-former-ceo-blames-bad-regulations-for-banks-collapse

Dick Fuld, the chief executive who led Lehman Brothers to the largest corporate collapse in modern times, has defended the failed investment bank’s culture, insisting that it was a victim of wider market excesses and regulatory failings in his first public speech since the banking crash of 2008.

“It was all about team,” he told a conference in New York. “My people were in it together – and our clients knew it. There was no ... ‘It’s my account,’ no ‘I’m a star, so pay me.’”

Fuld, who was paid $485m (£317m) in salary, bonuses and options between 2000 and 2007, also attempted to respond to criticisms that Lehman had not been good at assessing risks. “Regardless of what you heard of Lehman Brothers’ risk management, I had 27,000 risk managers, because they all owned a piece of the firm,” he said, explaining that staff had owned more than 30% of the bank’s stock.

In the final months before the demise of Lehman, Fuld said the bank had been furiously attacked by hedge funds that were short-selling the firm’s stock – effectively betting that it would decline in value. “I will hurt the shorts, and that is my goal,” he raged, five months before the bank came crashing down.

..

Fuld told the Congress members: “Not that anyone on this committee cares about this, but I wake up every single night wondering, ‘What could I have done differently?’ This is a pain that will stay with me for the rest of my life.”

..

At the conference on Thursday, however, Fuld threw a different light on the causes of Lehman Brothers’ downfall. The crash, he said, “started with the government. The government pushed for non-qualified home ownership. The government clearly ... wanted everybody to fulfil their view of the American dream.” To this point he added the aggravating factors of low interest rates and easy access to credit for homeowners. Credit bubble indicators were also plain to see, he suggested, in ballooning growth in GDP and in the private equity and hedge fund sectors.

I bet he wakes up every night, probably to thank god he got away with it and isn't in jail. Made $485m and then lost his job, the old rules of banking should apply and these people should have lost everything they earned. Good to see he wants to blame the regulators for not curbing his greed and power. I wonder how much Lehman spent on lobbying in this period against better regulation?

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In the final months before the demise of Lehman, Fuld said the bank had been furiously attacked by hedge funds that were short-selling the firm’s stock – effectively betting that it would decline in value. “I will hurt the shorts, and that is my goal,” he raged, five months before the bank came crashing down.

Sounds like the people short-selling the firms stock knew the business better than him - and with him having been paid half a billion dollars to know it.

Maybe they would have done a better job of running the business.

Edited by billybong

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sounds like a thieving barstard blames everyone else but himself for his thievery

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