Dick Fuld

  • 24 Mar 2010 at 3:08 PM

Charlie Gasparino: Dick Fuld Acted Like A Total Puss During The Lehman Brothers Inquiry

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As it’s been previously mentioned, Dick Fuld has been sleeping like a baby since the examiner’s report on Lehman came out. Though some would suggest the report’s findings indicate Fuld is a criminal, the ex-CEO believes it painted him in a phenomenal light. Reading the final draft also put Dick in a great mood because it took a huge weight off his shoulders. This is going to seem crazy, but apparently he was actually a bit nervous about what the thing would say about him! To the extent he could barely enjoy himself! Not even picking out the perfect outfit soothed him; my god, he could barely match shirt and tie without collapsing on the closet floor. Basically, The Gorilla was an absolute ball of nerves and you if you want Charlie Gasparino’s opinion? Kind of acted like a big puss during the ordeal. Sayeth Chaz:

According to people who know how the former Lehman CEO behaved during the inquiry, he often appeared “hyper” and “highly agitated,” and “barely stood still” during the questioning. One person with knowledge of Fuld’s behavior said that at times “he broke down” when asked about Lehman’s demise, and at others exhibited a tremendous amount of “nervous energy.”

It’s honestly a good thing CG wasn’t around to witness this display first hand, as it would’ve sickened him. Ridiculous. Gaspo didn’t say this in his report, because he works for a family network, but it would not surprise him to hear that Fuld pissed his shorts in fear on a daily basis and furthermore, that those shorts were “frilly lace panties” (Chaz’s words, not mine). But if he had been there? You can bet he’d be having none of this, and would’ve had no problem telling Dick as much, while sharing a little piece of advice. Little something like this. Continue reading »

  • 19 Mar 2010 at 3:45 PM

An Example Of What’ll Get You Fired From Lehman Brothers

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It’s not just chinos and pieces on the side. Another thing that made the Gorilla table flippingly mad was uppity pipsqueaks who dared to mention concerns about the firm committing fraud. Via the WSJ, here’s the letter that got whistle-blower Matthew Lee fired. He won’t make that mistake again!

MATTHEW LEE

May 18, 2008

PERSONAL AND CONFIDENTIAL

BY HAND

Mr. Martin Kelly, Controller

Mr. Gerard Reilly, Head of Capital Markets Product Control

Ms. Erin Callan, Chief Financial Officer

Mr. Christopher O’Meara, Chief Risk Officer

Lehman Brothers Holdings, Inc. and subsidiaries

745 7th Avenue

New York, N.Y. 10019

Gentlemen and Madam:

I have been employed by Lehman Brothers Holdings, Inc. and subsidiaries (the “Firm”) since May 1994, currently in the position of Senior Vice President in charge of the Firm’s consolidated and unconsolidated balance sheets of over one thousand legal entities worldwide. During my tenure with the Firm I have been a loyal and dedicated employee and always have acted in the Firm’s best interests.

I have become aware of certain conduct and practices, however, that I feel compelled to bring to your attention, as required by the Firm’s Code of Ethics, as Amended February 17, 2004 (the “Code”) and which requires me, as a Firm employee, to bring to the attention of management conduct and actions on the part of the Firm that I consider to possibly constitute unethical or unlawful conduct. I therefore bring the following to your attention, as required by the Code, “to help maintain a culture of honesty and accountability”. (Code, first paragraph).

Continue reading »

  • 17 Mar 2010 at 11:35 AM

Ex-Lehman Brothers Execs Tickled By How Bent Out Of Shape Everyone Is Getting Over Firm’s Use Of Repo 105

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As mentioned earlier this morning, Dick Fuld thought last week’s report on his firm’s bankruptcy was phenomenal, as it, in Dick’s mind, cleared him of any real wrongdoing because Repo 105 is completely legit. Others have now had a chance to weigh in and the consensus? The whole thing was a real gas. At least one former employee of the firm is finding some much needed comedic relief in this whole thing.

“When I read this, I giggle a little bit. Because $50 billion is a shitload of money, but in the grand scheme of things,” said a former managing director in England—where the accounting gimmick, named Repo 105, was given a legal endorsement that it couldn’t get here, “$50 billion is a drop in the ocean.”

Once Chuckles got a second to catch his breath, he wanted to get one thing straight. He’s not laughing with you, he’s laughing at you.

The former managing director in London said that Repo 105 was an open secret there, if it was a secret at all. “Yeah, yeah, yeah. In Europe, people just generically talk about it. It’s funny, for nonprofessionals, you can try to make it a smoking gun,” the source said, “I’m like, whatever.”

It’s such a NBD that I don’t even know why we’re talking about it. But while we’re on the subject? If you thought Lehman was bad? Maybe you should stick your nose in Goldman’s business. That shit will haunt your dreams. It’s like Saw over there. Continue reading »

  • 15 Mar 2010 at 5:54 PM

Lehman Brothers Is Ready To Start Anew

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Under the Chapter 11 reorganization plan proposed by the company, Lehman sought authority to create an asset manager business called LAMCO that would specialize in management of Lehman’s commercial real estate, mortgages, principal investments, private equity, corporate debt and derivatives assets.

Lehman said LAMCO would provide management services to Lehman, administer its assets and offer long-term employment opportunities for the hundreds of Lehman employees working to liquidate the former investment bank’s estate.

Lehman plans to end bankruptcy, create new company [Reuters]

  • 15 Mar 2010 at 12:55 PM

Dick Fuld Still Has A Friend In Charlie Gasparino

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Since Lehman Brothers bit the big one, many people have abandoned Dick Fuld. Former employees, friends, Erin– they all want nothing to do with him. There doesn’t seem to be much to gain in staying loyal to the ex-CEO, other than knowing you’ll never have to wonder whether or not you’re getting an honest answer to the question, does this outfit look like shit? (In fact, you won’t even have to bring it up– Dick will gladly broach that subject.)

So when it was suggested last week that Charlie Gasparino owed David Einhorn and all the critics of Lehman Brothers an apology, for saying that those claiming the bank was in a bad way had no idea what they were talking about, and that, were it to come down to a fight, street or otherwise, he’d have his money Fuld smoking all these fools, some peole might’ve assumed CG would admit the error of his ways and go on record to state that he’d officially stopped returning Fuld’s calls. Unfortunately, these people failed to remember two things: 1) Charlie Gasparino neither makes mistakes nor admits to them and 2) he never, ever turns his back on a friend. For these reasons and more (DF has dirt on CG), Charlie poses an interesting theory in his latest Daily Beast column– the guy preparing the report on Lehman released last week had an interest in making Fuld and Co.’s actions look worse than they maybe were–, that all in all, in said report, Team Lehman didn’t come off that bad and the Dick Fuld? Charlie’s still got his back.

I’ll be the first to tell you that Fuld was a good CEO who over time became arrogant and delusional, and with that allowed his firm to embrace risk in astronomically absurd ways, particularly as Lehman became more successful. Increasingly, he appointed yes men and yes women to senior posts, including Erin Callan, who in my opinion was grossly unqualified to be the chief financial officer of a major Wall Street firm that was rolling the dice on esoteric bonds. [...] But consider this: Valukas, a former U.S. attorney, works for the Lehman estate. It’s his job to get money for the estate to make creditors whole. In doing so, it’s his job to make Fuld & Co. look as culpable as possible in the way they handled the firm’s finances as it slid into bankruptcy.

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  • 12 Mar 2010 at 12:00 PM

How Would Former Lehman Brother’s CFO Brad Hintz Characterize The Bank’s Accounting Practices?

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“Shenanigans, Bob. Shenanigans.”

  • 11 Mar 2010 at 6:00 PM

Was It Dick Fuld’s Stupidity Or Flair For Fraud That ‘Cause Lehman To Bite The Big One?

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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. Continue reading »