Richard Fuld Still Doesn’t Think Lehman Was Really Bankrupt

[FBaggins]

Nearly seven years since the collapse of Lehman Brothers, former chief Richard Fuld Jr. is still in the first stage of grief—denial.

In a rare public appearance at a conference Thursday, Mr. Fuld reportedly argued that Lehman wasn’t a bankrupt company in September, 2008. He also said it had $28 billion in equity capital and $127 billion in unencumbered collateral. For most, the fact Lehman filed for Chapter 11 bankruptcy protection would be conclusive evidence it was, in fact, bankrupt. But Mr. Fuld said the firm was “mandated into bankruptcy,” a phrase he has used in the past. That flies in the face of the 2010 Lehman bankruptcy examiner’s report, which concluded there was sufficient evidence to find Lehman was insolvent by September 8, 2008—and perhaps earlier.

Mr. Fuld also insisted all 27,000 Lehman employees were “risk managers” because each owned equity in the firm. The notion that holding equity qualifies one as a risk manager at least sheds some light on the failure of Lehman to manage its risk.

http://www.wsj.com/articles/richard-fuld-still-doesnt-think-lehman-was-really-bankrupt-overheard-1432843690

"But I still have checks!"

[Wellstone ruled]

1. What a sell serving Ass.

Many of us took a hit on their Class A shares and this guy walked away with Billions. And the 1%ers wonder why their images are in jeopardy.

[FBaggins]

2. He didn't walk away with billions

He was estimated to be worth about a billion dollars just before the collapse... and then lost almost all of it.

I'd guess that he has a few tens of millions left depending on his ongoing legal expenses.

No reason to feel sorry for the guy, of course, but he didn't profit from the collapse.

[Wellstone ruled]

3. Fuld moved his total money value in Lehman

to his Spouse in a over night transaction. All or most of his Stock Holdings were sold the previous night at the London Exchange,next morning we had a Bankruptcy announcement,estimates ranged for hundreds of millions to a few billion in that transaction. BTW,this slug files a BK 7 a few days later. It is a Image and Legacy tour for this puke. There was a hundred million dollar cash transfer made from London to New York minutes before the BK news broke.

[FBaggins]

4. That doesn't make sense

Lehman's stock was next to worthless on the day before the bankruptcy. There wouldn't have been much value to transfer.

Nor do I see a record for a personal bankruptcy.

From what I've seen. He owned almost 11 million shares (worth up to $1 billion at the peak of the market), but it was down to almost nothing in the end. He sold millions of shares on the day of the filing, at pennies per share (netting less than a million dollars).

[Wellstone ruled]

5. As a Class A shareholder we

received all of the BK filings pertinent info as to what were and how this thing evolved. We as well as many filed a Class Action against Fuld his Board Directors and any and all parties involved. During the discovery process,all of what I say and more came to light. This Asshole walk away a Billionaire and many of us as well as Institutional Holders lost big time. The Lehman Stock went free fall after the U.S Markets closed and the real mischief accrued in the OTC markets later. The Game is so rigged and the Sharks walk away with the prize. Fuld is a Ego driven Butt Hole. Notice he did not loose his Estate's or have to do a Claw Back to settle any claims,and,he was able to dump all his debt obligations.

[FBaggins]

6. Could you link to something authoritative?

Sorry... but claims made in lawsuits are frequently erroneous, and this one sounds just like that.

He was barely a billionaire at the peak of the market (poor guy)... and virtually all of that was in company stock (and options). Those shares and options lost almost all of their value long before the period when you claim that he played his games.

The Lehman Stock went free fall after the U.S Markets closed

Nope. It fell from the mid-high 80s to the teens over the course of a year and a half. It hit about twelve dollars a share two months prior to the bankruptcy. Then there were four bloody days in a row as it fell to 8, then 7, then 4... then a bit over 3... then the bankruptcy hit and it collapsed to pennies per share.

Fuld is a Ego driven Butt Hole.

No doubt that's true. But he isn't a billionaire butt hole any longer. He'll have to suffer along with millions to tens of millions.

Notice he did not loose his Estate's or have to do a Claw Back to settle any claims,and,he was able to dump all his debt obligations.

A personal bankruptcy filing would be a public record - can you point to it?

His sales of personal stock are also a matter of public record. You should be able to point to them.

[Wellstone ruled]

7. We do not have any of the Paper work we recieved

from the Trustee or,I believe it was the Weise Law Firm. After a 100k loss,you just have to say F-- it and move on. Since this was handled through our so called Financial Adviser,whom we fired his ass for not moving fast enough to dump this thing when everyone knew it was toast. Since then we have been able to recoup our loss and move on to better things. All one has to do I would think is Google Lehmen Corp BK and chase the links. And,just so you know,we dumped all of our JP Morgan Class A's a week before this Lehman heist. Dumb luck..