Lehman head Dick Fuld has been personally named as an individual defendant in a suit brought by a Lehman preferred investors, or so says Reuters. Fogel Capital Management is trying to turn the matter into a class action suit to boot. Uh oh.
The lawsuit contends that the prospectus issued ahead of the offering was false and misleading because it did not reveal Lehman’s significant exposure to the subprime mortgage market, and also did not disclose that Lehman was in desperate need of capital because of deteriorating market conditions and rapidly falling values of its assets.
Like anyone reads those “risk factor” sections anyhow.
We love a good round of “What did the Chairman know and when did he know it?” as much as the next financial tabloid. In this case, its fortunate that Dick’s wife is an aspiring artist since he sold his own equity stake to fund the recent purchase of two Happy MealsTM with the WALL-E action figure toy.
Let me tell you, a more piteous figure than that cast by Dick Fuld, with down-turned gaze mournfully counting off the last few pieces of silver in his hand before declining to take the cashier up on her “Wanna Super-Size ‘dat?” offer, I have not heretofore encountered.
Investor in Lehman preferred stock sues for fraud [Reuters]
FARTING POOP MAYO DIAPER
Citi buying Wachovia
DICK FULD DRINKS KOREAN SPERM
Sup. Fogle.
SHUT..THE.FUCK…UP, FAGEL!
Korean…?
“NoKo!”
WB is down 30% today.
IT MUST BE THOSE GREEDY, SCUM-SUCKING SHORT SELLERS!!!
(Oh wait… short selling is illegal)
Has it occurred to anyone else that the entire justification for outlawing shorting was “evidence” of colluding shorts (sometimes “naked”) driving down bank share prices? We’re now seeing this “evidence” again. The conclusion drawn from the old premise (sharp drop in market value –> (therefore) short seller collusion) has been proven invalid.
Time to rethink the short selling ban?
Time to rethink the notion that we can legislate our way out of this mess?
@4 I am McLovin!
Are McRibs back yet?
Where is your fucking eyebrow now?
getting sued is the least of Fuld’s problems
DB, you seriously have to fix your upload/posting round-trip times. Or ! can just post this 4 more times by hitting “refresh”.
so were there lulz lehman became an Hero? or is it only me after reading /b/, before i puked?
Fuld’s wife is selling some of their art collection…. what will the bid/ask be on that?? Knowing this family I’d say w i d e
I don’t particularly want to see Fuld go to jail……but I think he deserves to give EVERYTHING he has earned back.
I agree – why should Lehman employees also share a $2.5billion bonus pool courtesy of Barclays…shame on them (Barclays)…and shame on the employees for taking it……but thats the crux of why the public should be right to criticise the bailout….
Um, last time I check LEH wasn’t bailed out by the public, asswipe.
@17…in 16′s defense…No one implied that LEH got a public bailout – although it came verrrrry close – guess it just didn’t lick Paulson’s boots well enough in those final few post-Callan mos. The point is, there is plenty of $$ already sludging around in these toxic waste dumps. Read Michael Lewis’ brilliant little piece on why we need legislation to preserve Goldman’s bonuses and way of life if you need it spelled out more clearly.
On a more serious topic…was this Fuld’s First Wife or a more recent model? If the latter…I wonder how long she will hold out before bailing a la Mrs. Kozlowski in Boca Raton. I seem to recall that several members of the Lb executive committee were on Wives #3 or 4.
These fellows NEVER learn.
NO TO THE BAILOUT IN ANY FORM.