Saturday, 20 April 2013

2009 Financial crisis:Wall Street Bankers

Wall Street Bankers

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.

2 comments:

  1. Lots & lots of Sub-prime lending
    Super 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

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  2. Sure they even offer you free drinks if you have tons of money with them-" privilege banking".
    If not please continue suffering waiting in the queue:)

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