Commentary: Take garbage out on Wall St. Enough with propriety. Demand full disclosure?
Severance pre-bankruptcy? Fraud charges looming.
Fuld and other Lehman execs facing inquiries statements about the bank’s position amounted to fraud. Fuld confronted with 6/8/08 internal memo including warnings about Lehman’s condition and asked the question, “Why did we allow ourselves to be so exposed?” Fuld said, “This does not look familiar to me.” Upset at exorbitant severance packages as Lehman headed to bankruptcy? “People in my block in Baltimore, if they perform poorly, they get fired, they certainly don’t get a bonus.”
Bloomberg today has the real causes of Bear demise. Bear traders used pricing models for mortgage securities that ``rarely mentioned'' default risk - SEC report excerpt posted on website of Sen. Grassley. Links