Point: This Whole Subprime Thing Is So Overblown

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We know there are certain firms in our industry that have, shall we say, a flare for the dramatic. You know who I mean, I think. They like to make big, shocking pronouncements. You know. Like, "Our flagship hedge fund, you know, the one that was originally only for our own employees that we finally deigned to permit outsider into? Yeah, it just lost 37% of our client's assets. Just the other month, actually." Or "There will be $1.2 tillion in credit losses this year." Right. Sure.
We understand the temptation to make these sorts of pronouncements. I mean, it keeps your name in the paper, that's for sure. Still, the reality is that there are some people out there, again, you know who I mean, people who have embarrassingly high compensation packages, who are just drama queens.
$400 billion is the number you are looking for, and, actually, since write-downs are already up around $415 billion, we are, today, forecasting $15 billion in write-ups at various financial institutions.
So, let's just not get our underwear in a twist alright? And stop shorting our stock. Ok? The subprime crisis is over. 'kay? Thanks.
Richard S. Fuld, Jr.
Chairman and CEO
Lehman Brothers Holdings

Lehman Sees Banks, Others Writing Down $400 Billion
[Reuters]

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