Lehman boss blames US for bank's collapse

[mike r]

http://www.google.com/hostednews/afp/article/ALeqM5hJe_hb0Desxv7zm5a0lEb6bl2Z5A

Lehman boss blames US for bank's collapse

WASHINGTON — The former head of collapsed US banking giant Lehman Brothers lashed out at the US government Wednesday, claiming it could have prevented the firm's collapse but failed to act.

Dick Fuld -- who became a poster child for the ills of the banking sector -- demanded to know why the government had rushed to help competitors but not Lehman, in prepared testimony for a committee investigating the financial crisis. "Lehman was forced into bankruptcy not because it neglected to act responsibly or seek solutions to the crisis, but because of a decision, based on flawed information, not to provide Lehman with the support given to each of its competitors."

Fuld detailed measures he said could have helped save the bank and complained that "each measure was later implemented in some form for other investment banks during the days and weeks following Lehman's bankruptcy filing." "Had Lehman been granted that same access as its competitors... Lehman would have had time for at least an orderly wind down or for an acquisition which would have alleviated the crisis that ensued."

The firm had 639 billion dollars in assets on September 15, 2008, when it filed for bankruptcy. It was the largest collapse in US history and sent the global economy into a tailspin. While admitting to "poorly timed business decisions and investments," Fuld also blamed the collapse of the bank on market rumors that were allowed to run amok. "Lehman's demise was caused by uncontrollable market forces and the incorrect perception and accompanying rumors that Lehman did not have sufficient capital to support its investments," he insisted.

[PBS Poll-435]

1. Not commenting on the merits of the article...

But Dick Fuld (Fold) is the funniest thing I have seen in the news in a very long time.

[mediaman007]

2. Dick, head to Dallas, complain to Jr.

[Guy Whitey Corngood]

3. "Dick Fuld"???!!!

:spray: :rofl:

[hobbit709]

4. It's never their fault.

:puke:

[metapunditedgy]

5. Why is this guy (and the bailout CEOs) not in prison? n/t

[jwirr]

6. The government at the time was the boooosh administration. Blame

them and quit working for their comeback.

[Dappleganger]

7. Trying to muster up an ounce of empathy.

Not. getting. any.

[TheMuse]

8. In a weird kind of way, it was

It was the US government's fault by repealing Glass-Steagal. By deregulating and allowing banks to run amok. Of course that is like blaming somebody else because they didn't say that you couldn't do this dumb, dangerous, and risky thing.

Basically they need protecting from themselves.

[Hannah Bell]

9. it was: the gov't played favorites. propped up lehman's rivals & cut it loose.

[Moostache]

10. Oh the humanity....a former "master of the universe" crying for GOVERNMENT?

The irony of this is the subtext...the "market forces" that were "uncontrollable" and led to the demise of Lehman are the EXACT consequence of killing off the government regulation of the securities industry...

Oh, noes...my monster...it turned on me and it haz sharp teeth!

[gratuitous]

11. That free market's a harsh mistress, isn't it Dick?

Maybe you should go Galt and teach the rest of us losers a big lesson about how badly off we'd be without your manly essence running things.

[JDPriestly]

12. He has a point. If we could bail out Goldman Sachs and BofA,

why couldn't we have bailed out Lehman Brothers? It looks very much like massive corruption in that when the bust got to Goldman Sachs -- Goldman's friends in the White House, starting with Henry Paulson, panicked and screamed uncle. That's when the entire country was robbed. We all know that to be true.

Bush, Obama and McCain were accomplices to that robbery, and that is perhaps one of the reasons that Obama does not cross Bush. Shame on Obama and all of Congress for giving in to what was simply extortion.

Henry Paulson should be closely watched. He will get into more trouble before he is done.

[Dawson Leery]

13. It was a great day when Lehman and Bear Sterns collapsed.

Bank of America, Citigroup, Chase, JP Morgan, AIG, and Goldman Sachs should have also been forced to fail.
These vultures on society were investing in horse manure. The trillions of dollars in naked derivatives served no economic purpose but to enrich
the hustlers who run Wall Street.