Lehman: All Fuld's Fault

John Gapper has the first best Lehman post-mortem:

Fuld never changed, not really. He was still the same dark, obstinate Lehman loyalist that he had always been - a man who never wanted his firm to be sold. And, in the end, Mr Fuld's pride and obstinacy stood in the way of Lehman's desperate efforts in the past half year to right itself...

He had devoted so much of his life and his personality into moulding the bank he could not accept its decline. If he had sold out earlier, Lehman might have survived but he was too proud. It was hubris, followed by nemesis.

Gapper's right: The fate of 24,000 Lehman employees lies on Fuld's broad shoulders. This credit crunch is a category-4 hurricane, and Fuld is the idiot who decided to hold his ground rather than evacuating and living to fight another day. Now his 158-year-old house has been destroyed. It's sad, yes -- but it's also tragic.

Comments

[playtohavefun:]

Fuld should be on the wall of shame for this financial disaster - by declining an offer of $26 per share from the KDB - that could have saved Lehman at this critical time.

2008 Sep 14 09:34 PM

[xz1:]

watch for a slew of law suits on behalf of share holders. Fuld should be jailed along with Enron craps.

2008 Sep 14 10:31 PM

[stillwater:]

isn't it easy to blame Mr. Fuld for not taking 26 bucks a share...investment banks are "risk takers" and without them this country would not have become what it is, the leader of the world. Lehman has some of the best brokers and deal makers in the business...there is a time to win and 158 years ain't bad....the employees knew the nature of the business...risk is the game only this time the piper must be paid...Mr. Fuld you did a good job and best of luck to all...this is CAPITALISM not SOCIALISM...there are winners and losers, nothing lasts forever...

2008 Sep 14 10:33 PM

[xz1:]

if he is not the one to be blamed, who else? he had at least six months to unload those toxic assets. And opportunity keeping knocking the doors, a week ago, yestday, today. he simply does not want to face the reality. what a bastard! how can this guy ever get a top job like that or lehman was a place for crooks from the very beginning.

2008 Sep 14 10:38 PM

[Signature:]

This is a BIG risk for the market and the Fed.. this will indrease the cost of Lehman's failure and REALLY make a few experts rich... much more than the hated "Wall Street bailout" that people usually discuss. Also, if Fuld did not have the strong personality that he does, no one would have let him stay around as long as he did.

2008 Sep 15 02:18 AM

[john s. gordon:]

amid all the hysterical yelling & screaming one has to ask - -who's next ? ?
wachovia ?
> jack

2008 Sep 15 08:33 AM