Dick Fuld, chief executive Lehman Brothers
"The Gorilla of Wall Street", as Fuld was
known, steered Lehman deep into the business of sub-prime mortgages. Lehman
took the loans and packaged them up into (soon-to-be toxic) bonds which they
sold to investors.
Fuld is said to have raked in almost $500m in pay
and bonuses during his tenure as chief executive, but the 66 year old insisted
to Capitol Hill that he actually only earned $300m. During the testimony, Fuld
was asked if he wondered why Lehman Brothers was the only firm that was allowed
to fail. "Until the day they put me in the ground, I will wonder," he
said.
A lot of Americans might have been stung by the
collapse in property prices in the wake of the crisis. Not Dick, in November
2008 Fuld transferred the ownership of his $100m Florida mansion to his wife.
They had bought it four years earlier for $13.5m.
In 2009 Fuld joined US hedge fund Matrix Advisors. A
year later he joined broker Legend Securities, he left the firm earlier last
year.
Lots & lots of Sub-prime lending
ReplyDeleteSuper Big bonuses not related to performance
Outsourcing IT without factoring in 100 million cost of system crash
Money laundering
Interest rate manipulation.
Apart from those things, the bankers are quite nice really....hee
Sure they even offer you free drinks if you have tons of money with them-" privilege banking".
ReplyDeleteIf not please continue suffering waiting in the queue:)