Congress hears Lehman sought millions for execs

[WriteDown]

Source: AP

WASHINGTON - Days from becoming the largest bankruptcy in U.S. history, Lehman Brothers steered millions to departing executives even while pleading for a federal rescue, Congress was told Monday.

As well, executives who feared for their bonuses in the company's last months were told not to worry, according to documents cited at a congressional hearing. One executive said he was embarrassed when employees suggested that Lehman executives forgo bonuses, and cracked: "I'm not sure what's in the water."

The first hearing into what caused the nation's financial markets to collapse last month, precipitating a $700 billion bailout, opened with finger-pointing and glimpses into internal company documents from Lehman's chaotic last hours.

Rep. Henry Waxman, D-Calif., chairman of the House Oversight and Government Reform Committee, said the giant investment bank was "a company in which there was no accountability for failure." Lehman's collapse set off a panic that within days had President Bush and Treasury Secretary Henry Paulson asking Congress to pass the rescue plan for the financial sector....


Read more: http://news.yahoo.com/s/ap/20081006/ap_on_go_co/meltdown_lehman

---

There were consequences, just not for everyone.

[dipsydoodle]

1. just not for everyone

I had a friend who would refer to such instances as "gravy for some".

[WriteDown]

2. I love the apologies....

for people who asked that bonuses be foregone. Like it was such an imposition. I don't mind them getting bonuses, but maybe they could have kept it to a million a piece.

[John7714]

15. Lehman CEO Richard Fuld KO'd at gym

Knock Out: CNBC Confirms Lehman CEO Punched at Gym
Network verifies reports Richard Fuld was attacked for financial institution's bankruptcy.

By Jeff Poor
Business & Media Institute
10/6/2008 3:59:29 PM

It seems anxiety from the financial crisis is reaching new highs, but the tipping point for one individual came at the Lehman Brothers gym in the midst of the company’s collapse.

While former Lehman CEO Richard Fuld was testifying before the House Oversight Committee Oct. 6, CNBC reported he had been punched in the face at the Lehman Brothers gym after it was announced the firm was going bankrupt. CNBC and Vanity Fair contributor Vicki Ward said Fuld was attacked at the gym on a Sunday following the bankruptcy.

“Frankly, I sat there and listened and I’m with the guy who apparently, the day before Barclays announced they were coming in and Lehman had already filed for bankruptcy, went over to him in the gym and punched him because that’s how I feel when I, you know, when I watched that,” Ward said on the Oct. 6 “Power Lunch.” “I didn’t think he was contrite at all, I thought he was arrogant.”

Ward confirmed previous reports about the incident that reportedly occurred Sept. 21 and said the information came from “two very senior sources.”

“From two very senior sources – one incredibly senior source – that he went to the gym after … Lehman was announced as going under. He was on a treadmill with a heart monitor on. Someone was in the corner, pumping iron and he walked over and he knocked him out cold. And frankly after having watched this, I’d have done the same too.”

Ward determined Fuld deserved the beating based on his testimony before the committee.

“I thought he was shameless,” Ward said. “I thought it was appalling. He blamed everyone. He blamed, as you say, ‘naked short sellers’ over and over in case we didn’t get the point, when in fact hedge funds like Harbinger had money locked up in Lehman and was shorting it to try and make the most of the money that they already had. He blamed everybody but himself.”

Lehman Brothers filed for bankruptcy in September 2008 and its assets were later snatched up by the British bank Barclays for $1.35 billion, which included Lehman’s Midtown Manhattan office tower with a $960 million price tag.

http://www.businessandmedia.org/articles/2008/20081006150152.aspx

[dipsydoodle]

16. Might have been more appropriate to

kick him in the nuts.

[Robbien]

3. The executive who mocked giving up the bonus was George Walker, Bush's cousin

Funny that fact was omitted from the reports in the US news but foreign news sites clearly stated that it was George Walker who was the Lehman executive who mocked employees when asked to forgo a bonus before the bankruptcy.

[WriteDown]

4. I'm sure no one wanted to tell the Lehman execs no...

Afterall, their money management team was being paid by Lehman to basically be feel good yes men. Sick.

[seafan]

5. So, did Congress hear whether Jeb Bush got his bonus at Lehman while begging for a bailout?

Congress hears Lehman sought millions for execs, October 6, 2008

WASHINGTON - Days from becoming the largest bankruptcy in U.S. history, Lehman Brothers steered millions to departing executives even while pleading for a federal rescue, Congress was told Monday.

As well, executives who feared for their bonuses in the company's last months were told not to worry, according to documents cited at a congressional hearing. One executive said he was embarrassed when employees suggested that Lehman executives forgo bonuses, and cracked: "I'm not sure what's in the water."

.....

Is that you, Jeb? Sounds like his characteristically acid tongue. (Or maybe it came from Jeb's cousin George Walker, another Lehman vampire...)





Fury at $2.5bn Lehman bonus, as Jeb Bush rubs his pudgy white hands together in glee, September 21, 2008


Gov Crist asks whether Lehman may have hired Jeb Bush to gain influence to sell bad debt to Florida, May 31, 2008


Forbes: Jeb Bush involvement with Lehman raises questions in Florida investment fund debacle, December 1, 2007


Lehman /JP Morgan pushing to privatize FLA Lottery; Jeb Bush in as new Lehman financial advisor, September 11, 2007




Just the tip of the iceberg.

[rosesaylavee]

6. Could you make this a post?

If you have already and I have just not seen, sorry about that. But I think this is very suspicious. Had no idea that Jeb was working for Lehman.

[seafan]

7. Will do again, thanks. n/t

[cascadiance]

8. Bush Brothers (in government) + Lehman Brothers (business) = death of economy!

Is that you, Jeb? Sounds like his characteristically acid tongue. (Or maybe it came from Jeb's cousin George Walker, another Lehman vampire...)

The bottom line is that we need to clean up BOTH our government and business rid of the CRIMINALS that now run them both. Power corrupts absolutely (whether it's in government or in the "free market")

A lot of work is going to be needed in the coming years to bring BOTH these sets of "evil doers" to justice and put behind bars. Hope Vince Bugliosi has folks lined up to do both!

[glinda]

9. American People Pay and Execs Should Pay also

in my opinion. Just because they are a Republican should not exempt them from jail time or being responsible to pay back to lessen this crisis. I imagine they are Republicans. Just my guess.

[WriteDown]

11. There are a lot of democrats.....

but they are not progressives. More like the "live in Shelton, CT, but commute to Manhattan" type of Dems.

[yardwork]

10. I'm tired of writing "That's disgusting."

[Milspec]

12. What value can you possibly provide

A corp. the be compensated > one million a year. Movie stars and sports figures can justify big $$$ by there draw at the box office or stadium.

[whistle]

13. Jail time, nail those bass-turds Henry!

[benld74]

14. The Lehman JOE and JANE SICK PACK get zilch, nada, zero, zip,,

the big nothing, a goose egg, the ole bend over a table, the big kiss off,etc, etc, etc,

[OakCliffDem]

17. Kick