According to the examiner’s report, a little bit of both. (Since Anton Valukas apparently has no interest in telling both sides of the story, it falls on us to remind you that Dick has his own theory for why LEH went under: the adoption of Casual Friday).
Fuld was warned months before the bankruptcy by Treasury Secretary Henry Paulson that Lehman might fail if it continued to report losses without finding a buyer or putting in place a survival plan, according to the report.
Lehman’s chief was “at least grossly negligent in causing Lehman to file misleading periodic reports” while its risks were rising because of long-term assets financed with short-term debt, Valukas said in the report.
Lehman’s executives engaged in conduct ranging from “non- culpable errors of business judgment” to “actionable balance sheet manipulation,” as they used “accounting gimmicks” to move assets off the balance sheet without disclosing that to the government, rating agencies, investors or Lehman’s board.
Also supposedly not helping matters was Pandit. That damn Pandit. And Jamie Dimon but he gets a pass because he can do whatever he wants.
“The demands for collateral by Lehman’s lenders had direct impact on Lehman’s liquidity pool,” said Anton Valukas, the U.S. Trustee-appointed examiner, in a 2,200-page report filed in Manhattan federal court. “Lehman’s available liquidity is central to the question of why Lehman failed.”
JPMorgan, Citigroup Helped Cause Lehman’s Collapse [Bloomberg]
Lehman Report [Jenner And Block]
Here Are Some Thoughts On Men And Wall Street
Jerk Running Ferry To Fire Island Not Up On The Celebs Of Financial Reform
We needed to wait nearly two years for an examiner’s report to tell us what Imhorny told us ages ago?!?
The examiner’s report only cost $38 million, though.
Not Guilty. Gorillas aren’t advanced enough to comprehend a concept as technical as fraud.
What is a Dick Fold for anyway?
What is a dick fold?
if you’re a cfa, do not host pictures of any dick fulds on your facebook or linkedin pages
Are these fuckwits looking at jail time? I could use some company.
Are these fuckwits looking at jail times? I could use some company.
-Bernie
I wonder if I can “Repo 105″ my bunghole in exchange for cigarettes in the joint – - bunch o’ Prison Bitchezz
these fuckers just dont understand accounting
So it wasn’t all a naked shorting conspiracy that involved a magic fax machine? It wasn’t the shorters at all, naked or clothed?
We’ve been sold a bill of goods???
Erin Callan will be hittin the spinning class all week, the stress this report will add…….
What a Dick.
Looks like alot of ex-Lehman senior officers are in hot water now. Ian Lowitt’s pic on Bloomberg will soon have a frown, let us see how long Barclays Capital keeps him around, any guesses?
Casual Friday’s for Fuld, O’Meara, Callan, and Lowitt may now include a pinstriped suit with your own number on the back…
I’m amazed this is coming as big shocking news to everyone. Lehman was doing quarter/month end repos with anybody and everybody going back to the Thai blowup 10+ years ago to “reduce” their balance sheet. Everybody in the firm knew this. It was always a huge priority. The financing piece was why Lehman switched from a calendar year-end to November, so it wouldn’t run into the year-end financing logjam. The rating agencies and the SEC knew what was going on. The joke was repoing long term mortage positions over month end and actually calling them sales. This was going on for years. For Dick to claim he didn’t know about this is laughable. Everyone knew.
@16 Well presented – you didn’t need 3,000 pages either – hope you got a cut of the 38 large the gov’t paid for the “report”
Blame it on LEH mgmt multiple 2006/07 lobotomies.
They will do voluntary compensation clawbacks.
In 1991 a similar report came out on Drexel Burnham Lambert, and the group of top 200 exec’s ran a spread sheet that showed, right or wrong they were going to spend min. $1 million each on legal defense, before fines, interest, restitution, etc.
They ponied up $250 Million and settled.
Now the “gross negligence” for Fuld means lots of dollars for lawsuits; Callan, Gregory, and anyones names on the 10-K certification, plus the Ernst partner will be paying big bucks.
The Hamptons pad was nice Erin, better call the realtor.
it is a shame Steve Berkenfeld isn’t going down. Knowing him , he probably cooperated fully with Examiner to avoid any problems. He would turn on anybody to save his skin.
Plea stupidity Dick, you can’t go to Club Fed for being intellectually challenged.