Dick fuld's Role Experience

However, fate does not always favor adventurers. An American analyst pointed out that in Lehman's $800 billion balance sheet, the net asset value is only about $25 billion. Analysts of "Green Capital" pointed out that Lehman Brothers had a headache of $6.5 billion in asset-backed securities in CDO. The outbreak of the subprime mortgage crisis made Lehman's weaknesses clear. After JPMorgan Chase's acquisition of Bear Stearns, Lehman became the weakest of the four independent investment banks in the United States, and was also the most seriously affected by the subprime mortgage crisis.

Lehman's failure is mainly in the securities business related to real estate, which is more than its main rivals. According to Brad Hintz, former chief financial officer of Lehman, Lehman's hard-to-value securitization products are equivalent to about 2.5 times its net assets.

Fuld's stubbornness also prevented him from grasping the last straw in the capital increase negotiations with the Korea Development Bank. Originally, Fuld had the opportunity to sell a 25% stake in Lehman to the other party and get about $6 billion in funds, but in the end Fuld refused on the grounds that the price was too low, and the negotiations officially broke down. On September 10, Lehman Brothers' share price plummeted by 45%, the biggest one-day drop since the establishment of 158.

No matter how bitter the fierce action of the capital market brings today, Fuld is still a conscientious CEO. Since the outbreak of the subprime mortgage crisis, Fuld has raised $654.38+0.4 billion, sold assets of $654.38+0.47 billion, and increased cash to cope with possible bank runs. He once said, "It's no use hiding with your head covered. Face the dilemma and don't fantasize that it will go away. " In the end, however, Fuld failed to lead Lehman to win the battle.

"Can bear all the results, can bear any blow, but the most afraid of waiting for the trial process. I am like a death row prisoner, and my heart is full of fear. No matter how hard the mask is, what I fear most is the trial process. " This is a sentence taken from the Internet, but it also aptly describes the mood of dick fuld, the former CEO of Lehman Brothers, during his review.

Crisis vanity fair

This is not the first time Congress has summoned him. Fuld participated in it as early as 2008, and that hearing also caused him a lot of psychological shadow. At that time, everyone was greatly stimulated by the financial crisis Demonstrators with pink placards look like they are going to eat him, which always makes him tremble. Fuld used to be ruthless, and his words can show how many enemies he made in the financial industry. He said, "If I find a short seller, I will rip out his heart and eat it in front of him while he is still alive." These words doomed him to find no friends to help him when he was at the end of the road, and even the US government looked on coldly.

It took taxpayers $38 million to complete a 2200-page report on Lehman's "autopsy". Without finding a few criminals, it is estimated that it is difficult to appease those who were badly hurt by Lehman. The "autopsy" report has been out for some time. Obviously, it is not a "headless case", and former CEO Fuld may be sent to prison. According to the new news from the US Congress, Fuld and the heads of relevant US regulators will be summoned again in April. At that time, US Treasury Secretary Timothy Geithner, Federal Reserve Chairman Ben Bernanke and former US Securities and Exchange Commission Chairman Alex Cox will all appear in court one by one.

In fact, the reasons for Lehman's bankruptcy include the ruthlessness of the government, the negligence of the regulatory authorities, the falsification of evidence by accounting firms, the looting by speculators, and other irresponsible factors in which company executives hold high salaries. Why is Fuld the only one in trouble?

Beaten "street mouse"

After Lehman's bankruptcy, Fuld has now found a job in a fund company on the Third Avenue in new york. However, his income is not as good as before, and his money is tight. He can't play golf or take a private jet, so he can only take an ordinary flight instead. Usually wearing T-shirts and jeans like ordinary people, life is really hard, and occasionally I will take out my previous collections for auction. Although he longed for a quiet life, it always backfired.

The "Autopsy" report considered Fuld "the biggest problem" because he was suspected of using a set of accounting procedures "repurchase 105" to help Lehman cover up its financial difficulties, which led to many investors being cheated. This is not the first time Congress has summoned him. As early as 2008, Fuld was involved. When Fuld saw that the reporter wanted to interview him, his first sentence was: "You don't have a gun, do you?" He was so nervous for no reason, because in the gym, he was beaten by a group of people, walking in the street, and even the taxi driver tried to kill him. A 64-year-old man, unsympathetic, was stabbed in the spine and beaten like a street mouse. This congressional summons, it is estimated that he is more nervous.