The Bankwatch

Tracking the consumer evolution of financial services

Fuld and Lehmans – 1 year on

It was 1 year ago Sept 15th when Lehman Brothers did the previously unthinkable, and dissolved in inglorious bankruptcy. This Reuters piece catches up with Dick Fuld who commutes from his mansion in the Rockies to Manhattan 3 or 4 times weekly for expensive lunches and some consulting work.

fuld_30470464

With the combined $310 million package and sale of Manhattan spot for $25 million he is managing. The observation of ex Lehmans emoloyee is illustrative of his approach though.

fuld_m_0810200001 Google Earth

Fuld says being “dumped on” for Lehman failure | Reuters

Lawrence McCarthy, who was head of distressed bond trading at Lehman and works for Rafferty Capital now, told Reuters he quit after warning, several times, that the real estate market was living on borrowed time and that Lehman was becoming too leveraged.

“Other than six or seven people, no one really knew him. It was like he was in his own world on the 31st floor,” McCarthy said of Fuld. “He was never in touch with the troops. In my four years there, he never came down to the trading floor. Not once.”

Researched by Nobuyo Henderson

Written by Colin Henderson

September 8, 2009 at 20:01

Posted in Uncategorized

Tagged with ,

2 Responses

Subscribe to comments with RSS.

  1. Having read the article, Fuld does actually come across as sincere, which is probably the result of a year’s worth of battering from the media …and the rest of the world! However, as true as this sincerity may seem, he will never be fully forgiven by society as long as he is enjoying his $310 million package which shouldn’t rightfully be his.

    Finance Ed

    September 10, 2009 at 03:34

  2. @ed … I think that about sums it up nicely.

    Colin Henderson

    September 12, 2009 at 21:04


Comments are closed.

%d bloggers like this: