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Bonus Watch '08: Lehman Brothers

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Bonuses at LEH are down 100 percent.

If you are Dick Fuld. Bloomberg reports that the CEO will go without this year in an effort to "prepare his guys for what's coming for them. He's setting an example because the troops will also get shrunk bonuses." Probably also 'cause he's trying to save his ass from going the way of Erin Callan but whatever, details. This is about morale!
Lehman's Fuld, McDade to Forgo Their 2008 Bonuses [Bloomberg]

You might be asking yourselves, Why are there full episodes of a seminal television show at the end of each post? Well, last night I was agonizing about how suicidal our readers must be over the market being down three percent and bonuses being an 1/8th of what they were last year and thought, what can I do to cheer them up? Herewith, please enjoy these entire episodes of Alf, on me.


Lehman Brothers Thought Fight To Stay Alive Was A Battle Of Good (Them) Versus Evil (Everyone Else)

As some of you may recall, a month after Lehman Brothers went under, the House Committee on Oversight and Government Reform released an interesting email Dick Fuld had sent to LEH vice-chairman Thomas Russo on Saturday, April 12, 2008, circa midnight. Dick had just come back from a dinner with Hank Paulson and was so excited to relay the details he couldn't wait 'til the next day to get in touch with Russo, who he apparently viewed as his "teacher." Fuld said his key "takeaways" were that the government loved Lehman, that Paulson wanted to "kill the bad hedge funds" (like those diabolical shorts Fuld knew were to blame for his problems), and that while the then Treasury Secretary appeared to have a "worried view" of Merrill Lynch, Dick got the sense that Paulson thought Lehman was in terrific shape. Per the bankruptcy documents put online last week, here's how the rest of the conversation between Fuld and his Sensei went.