Remember Joe Gregory? Former Lehman Brothers president? Used to commute to the office from Long Island via helicopter? Was publicly dressed down by Dick Fuld on at least one occasion for leaving the house wearing a hideous green suit? He voluntarily resigned in June 2008, and since he technically wasn’t on site when the firm bit the big one, felt he was entitled to $233 million in back pay. And yet, despite filing a claim for his money over four years ago, has seen not one dime! Presumably the estate will get to his case soon (Gregory’s claim remains outstanding, so there’s still hope) but in the meantime, Big G’s gotta put food on the table. He put his 15,000-square-foot home on the market last year for $22 million and now is holding a fire sale of all his furniture. Read more »
The former Lehman Brothers chief operating officer and close personal friend of Dick Fuld has reportedly put his Lloyd Harbor. For $22 million you get a 15,000-square-foot main house, a 6,000-square-foot guest house, nine acres, 6 bedrooms, 8.5 baths, a 7 car garage, what appears to be a duplex apartment for shoes, and a little piece of history. Plus, you’d read be helping out the guy, who never collected his $230 million in deferred compensation. [Dealbook]
Securities And Exchange Commission Can’t Find Any Grounds On Which To Sue Former Lehman Brothers Execs, May Release A Strongly Worded Letter Of Disappointment InsteadBy Bess Levin
Remember Lehman Brothers? Bank that went under in 2008? Had some maybe questionable business going on with its balance sheet? The SEC has been trying its darndest for a while now to prove the company and its senior staff, led by a guy named Dick, violated securities laws but in over two years have come up with nothing and are pretty tuckered out. The Commission knows some people will be pretty ticked off if no lawsuits are ever brought against Richard Fuld and his backup dancers, which is why they’ve come up with an alternative that they think is nearly as good. No civil actions but instead- tell them what you think of this- Lehman Brothers is publicly rebuked? That’ll send a message, eh? Read more »
Fortunately, this attention by the SEC has not stopped Gregory from going after the $230 million he’s owed in deferred comp.
First off, I would like to congratulate everyone who’s recently signed up to have a chopper take you to and from work for the extremely reasonable fee of $200 a day. According to Liberty Helicopters, which begins weekday service next month, there’s been a huge interest in the service, which is heartening.
Liberty has already been approached by 150 potential clients after about a month of advertising, Patrick Day, a pilot and vice president of charter marketing, said in an interview in the cabin of a twin-engine Dauphin at the carrier’s base in Linden, New Jersey. The interest may reflect how far Wall Street has bounced back, said Robert Grotell, an independent transportation consultant in Port Jefferson, New York.
“When an economy turns sour, corporate air transportation seems to be one of the first things that’s affected, and it’s usually one of the last things to come back,” Grotell said in a telephone interview. Corporate clients are responsible for about one-third of helicopter traffic in the New York area, which slid as much as 30 percent in 2009 from a year earlier, he said. “Maybe the economic turnaround is well under way,” Grotell said.
Fuld privately believes that the report by examiner Anton Valukas provides proof that he did nothing illegal as he steered Lehman through a financial mess that ultimately led the firm to file the largest bankruptcy in US history, according to sources familiar with the matter […] But while Valukas in the report said that the Lehman estate has “colorable” claims against Fuld, former CFO Erin Callan, and other members of the financial team for not disclosing its use of the Repo 105 transactions, people in Fuld’s camp think differently. They say that if after poring over reams of documents and sifting through millions of e-mails, Repo 105 is the strongest example of Lehman’s supposed shenanigans, Fuld & Co. are in good shape.
In related news, Joe Gregory is looking for a job, if anyone knows of any opportunities.
Micromanaging Executives’ Marriages, Judging Sartorial Choices Topped Dick Fuld’s To Do List At LehmanBy Bess Levin
When one is running a multi-billion dollar firm, it’s important to have an unwavering, obsessive attention to detail. While Dick Fuld’s focus on Lehman Brothers’ balance sheet admittedly fell by the wayside, there was one thing the Gorilla never stopped harping on: an insistence his top lieutenants had perfect marriages. According to a new book by Vicki Ward, Lehman management tied the success of the bank to how strong its marital partnerships were, with Chris Pettit, a former Fuld deputy, giving a toast at a dinner for the senior executives one night and noting, “Now, look at this! Every single person here is with their original spouse. That is why we are successful. Because our word is our honor. We succeed in business because people can trust us.” It was after this bold proclamation, the logic of which allows us to safely assume that circa September 2008, the majority of LEH brass was on its third and fourth wives and spending the majority of its days locked in Dick Fuld’s office blowing lines out of crack-whore’s ass, that Pettit was pushed out of the firm. Not for fucking up business-wise, of course, but because he cheated on his wife and was subsequently “deserted” by his closest allies because that is something Lehman Brothers don’t do. Determined, for some reason, possibly Asperser’s, that something so horrible could never happen to Team Lehman again, Dick Fuld apparently became even more obsessed with keeping “a watchful eye on his executives’ marriages.” He “openly” hemmed and hawed about chief minion Scott Freidheim being single (which would explain this look of joy when Scotty-boy finally tied the knot at age 43) and became visibly distressed at the “signs of marital discord.”
During the annual Lehman summer retreats at the Fulds’ ranch, in Sun Valley, Idaho, it wasn’t uncommon for him to pull one of his employees aside and ask him questions about his home life. “Are you all having trouble?” he asked Bradley Jack, head of banking and later co–chief operating officer (C.O.O.), after overhearing an argument between Jack and his wife, Karin. “He really wanted to know,” recalls Karin, an attractive blonde, who once ran recruiting on the sales desk at Lehman and married the good-looking, athletic Jack in 1991. “He didn’t think Brad and I looked happy enough. It really worried him.”
Mark your calendars ladies because on November 1 Lehman Brothers will start hawking the artwork that once graced the walls of Dick Fuld’s office, executive dining room, gym and lobby. Barclays had one year from the time it purchased Mr. Fuld’s domain to buy the photos and drawings, which the Brits unceremoniously declined, along with the dog. Up for grabs are Lichtenstein’s “I Love Liberty,” expected to go for $25,000, a few $500 photos, and several charcoal drawings Erin Callan did of The Gorilla when they were on better terms. Surely there’s something in there for everyone. Write a check today. If not for a love of art, then do it for the creditors who are owed $250 billion but most especially former prez Joe Gregory, who is waiting for $233 million in deferred comp and is getting antsier with each passing day. We haven’t seen it up close but Callan is said to have gotten the shading on the nipples exactly right. That’s gotta be a collector’s item.