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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.

“If Valukas went into Goldman Sachs, what do you think the report would look like?” another former exec asked, referring to the court-appointed examiner, Chicago attorney Anton Valukas. “This would be a fairy tale compared to that.”

The Repo Men's New Lehman Shrug
[NYO via DI]


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.