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September 7th, 2009

Dick Fuld: Scapegoat or villain?

Posted by: Solarina Ho

Nearly a year after the collapse of Lehman Brothers, a failure that triggered the global economic crisis, the much-lambasted chief executive Richard Fuld seemed burdened — but not crushed — by the pressure of the upcoming annivesary.

“You know what, the anniversary’s coming up,” he told Reuters. “I’ve been pummeled, I’ve been dumped on, and it’s all going to happen again. I can handle it. You know what, let them line up.”

Fuld, a nearly 40-year veteran of the company, took Lehman’s reins in 1994 at one of its darkest hours and rebuilt it into the fourth-largest U.S. investment bank, a Wall Street powerhouse whose massively profitable mortgage banking machine inspired rivals’ envy.

But after filing the biggest bankruptcy in U.S. history, Fuld was vilified and humiliated before a Congressional panel last October and named in nearly 40 different legal actions.

Opinions are still divided over his role in the disaster, but he doesn’t see the point of speaking out: “Nobody wants to hear it. The facts are out there. Nobody wants to hear it, especially not from me.”

Is he the scapegoat of a massive systemic failure on Wall Street, or does he deserve to be a central villain in the collapse?

June 30th, 2009

Who do you blame for the credit crisis?

Posted by: Jane Merriman

Greedy bankers are routinely blamed for the credit crisis but one British-based poll of -- well, financiers -- spreads the blame more widely.

Gary Jenkins, head of fixed income research at Evolution Securities, wanted a more specific scapegoat and ran a poll of about 200 mostly fund managers and investors asking them to pick their credit crisis culprit. Former U.S. Federal Reserve Chairman Alan Greenspan was the clear winner, picking up 35
percent of the votes. He has been widely criticised over the past year for low interest rate policies that helped fuel the credit boom.

Former U.S. president Bill Clinton also figured quite prominently with about 10 percent of  votes, and British prime minister Gordon Brown got quite a few.

Some bankers were singled out, including Fred Goodwin, former chief executive of Royal Bank of Scotland and Richard Fuld, the head of collapsed Lehman Brothers.

In a related article in Euroweek, Jenkins also had a unique culprit -- Bill Gates of Microsoft. None of the maths behind structured credit could be done without spreadsheets like Excel, Jenkins reckons.

So who do you think is to blame?

(Reuters photo: Kevin Lamarque)

September 10th, 2008

What will happen to Lehman Brothers?

Posted by: Adam Pasick

lehman.jpgLehman Brothers plans to sell a majority stake in its asset management unit and spin off commercial real estate holdings, hoping to restore investor confidence and ensure its survival after reporting a record quarterly loss of about $4 billion.

What do you think will happen to the storied investment bank? A successful recovery? A Bear Stearns-style government bailout? Is Lehman Brothers too big to fail? Give us your thoughts in comments.

Click here for full coverage of Lehman Brothers.

You can also use Hubdub, an online prediction market that allows users to wager virtual cash on the outcome of news events, to make a prediction about whether the government will bail out Lehman Brothers within the next 30 days.

Will the U.S. government bail out Lehman Brothers within the next 30 days?