Lehman Bros steered millions to departing executives while pleading for rescue

[Mark Wein]

http://news.yahoo.com/s/ap/20081006/ap_on_go_co/meltdown_lehman


Waxman said that in January, Fuld and his board were warned the company's "liquidity can disappear quite fast."

Despite that warning, he said, "Mr. Fuld depleted Lehman's capital reserves by over $10 billion through year-end bonuses, stock buybacks, and dividend payments."

Waxman quoted Fuld as saying in one document, "Don't worry" to the suggestion that executives go without bonuses.

That suggestion came from Lehman's money management subsidiary, Neuberger Berman. Waxman quoted George H. Walker, President Bush's cousin and a Lehman executive who oversaw some Neuberger Berman employees, as responding with a dismissive tone to the idea of going without bonuses.

"Sorry team," he wrote to the executive committee, according to Waxman. "I'm not sure what's in the water at 605 Third Avenue today.... I'm embarrassed and I apologize."

[hobo]

Yes, the world is full of trickery >:(

[thredlok]

They got a bit of Marie Antoinette Syndrome going on there.

Not uncommon for the rich and privileged.

[xqqmytude]

Hehe ;D

http://www.businessandmedia.org/articles/2008/20081006150152.aspx

[Chihlidog]

Hehe ;D

http://www.businessandmedia.org/articles/2008/20081006150152.aspx


Sorry but dude deserved it.

[xqqmytude]

Hehe ;D

http://www.businessandmedia.org/articles/2008/20081006150152.aspx


Sorry but dude deserved it.
Hell yeah, he did.

[Chihlidog]

These people should have to all make a donation, right from their own pockets, from their own bank accounts, and from their own portfolios, to pay for my family's mortgage for a year. And every other American family's mortgage for a year. And so should every Wall Street firm like these guys who profit off of fear mongering, and making things tougher for the rest of the country while they get rich.

[xqqmytude]

These people should have to all make a donation, right from their own pockets, from their own bank accounts, and from their own portfolios, to pay for my family's mortgage for a year. And every other American family's mortgage for a year. And so should every Wall Street firm like these guys who profit off of fear mongering, and making things tougher for the rest of the country while they get rich.
Yeah right.

Do you realize that if the government had just passed the bailout and given every single American citizen over 18 an equal cut, it would be almost $250,000 per person? Most of us wouldn't have a mortgage anymore. I sure wouldn't. This isn't about us. It's about them.

[Chihlidog]

These people should have to all make a donation, right from their own pockets, from their own bank accounts, and from their own portfolios, to pay for my family's mortgage for a year. And every other American family's mortgage for a year. And so should every Wall Street firm like these guys who profit off of fear mongering, and making things tougher for the rest of the country while they get rich.
Yeah right.

Do you realize that if the government had just passed the bailout and given every single American citizen over 18 an equal cut, it would be almost $250,000 per person? Most of us wouldn't have a mortgage anymore. I sure wouldn't. This isn't about us. It's about them.


I certainly know that, and I am not kidding myself to think it would ever happen. Just sort of venting.

[thredlok]

They should be going after the golden parachutes and performance bonuses that were given before the bail out, as misappropriated funds >:(

and then beat the snot of out of them ;)

[xqqmytude]

They should be going after the golden parachutes and performance bonuses that were given before the bail out, as misappropriated funds >:(

and then beat the snot of out of them ;)
I want a good ol' tar and feathering. >:(

[Denverdave]

They should be going after the golden parachutes and performance bonuses that were given before the bail out, as misappropriated funds >:(

and then beat the snot of out of them ;)


I totally agree. All bonuses and stock options cashed in over the past 12 months should be forfeited...

BRB - I gotta walk my daughter to school.... :D

[Mark Wein]

Hehe ;D

http://www.businessandmedia.org/articles/2008/20081006150152.aspx


I hate to say that I approve of a violent act like that but I agree...the guy did have it coming >:(


Asshole.

[Mark Wein]

They should be going after the golden parachutes and performance bonuses that were given before the bail out, as misappropriated funds >:(

and then beat the snot of out of them ;)


I totally agree. All bonuses and stock options cashed in over the past 12 months should be forfeited...

BRB - I gotta walk my daughter to school.... :D


Just unbelievable that these guys get to hang on to these rewards for destroying the worlds economy. I really hope there is some jail time handed out over this.

[xqqmytude]

They should be going after the golden parachutes and performance bonuses that were given before the bail out, as misappropriated funds >:(

and then beat the snot of out of them ;)


I totally agree. All bonuses and stock options cashed in over the past 12 months should be forfeited...

BRB - I gotta walk my daughter to school.... :D


Just unbelievable that these guys get to hang on to these rewards for destroying the worlds economy. I really hope there is some jail time handed out over this.
You mean resort prison with daily massages? Yeah~ :(

[Prages]

Do you realize that if the government had just passed the bailout and given every single American citizen over 18 an equal cut, it would be almost $250,000 per person? Most of us wouldn't have a mortgage anymore. I sure wouldn't. This isn't about us. It's about them.


I really don't want to argue, but I don't think that's right.

According to this source: https://www.cia.gov/library/publications/the-world-factbook/print/us.html

There are about 243,000,000 Americans over the age of 15. (Don't see an over 18 #)

Divide it out and you get a little less than $2900. The population would have to be 2.8 million for the entire US for everybody to receive $250,000.

[Mark Wein]

They should be going after the golden parachutes and performance bonuses that were given before the bail out, as misappropriated funds >:(

and then beat the snot of out of them ;)


I totally agree. All bonuses and stock options cashed in over the past 12 months should be forfeited...

BRB - I gotta walk my daughter to school.... :D


Just unbelievable that these guys get to hang on to these rewards for destroying the worlds economy. I really hope there is some jail time handed out over this.
You mean resort prison with daily massages? Yeah~ :(


No, I mean PMITA prison....where they can be this guys new wife:

http://i243.photobucket.com/albums/ff236/cochetaman/curtis.jpg

[Denverdave]

You mean resort prison with daily massages? Yeah~ :(


Those prisons really need to go. There are plenty of medium security prisons they can stay in...

[xqqmytude]

[quote=ChihliDog ]

Do you realize that if the government had just passed the bailout and given every single American citizen over 18 an equal cut, it would be almost $250,000 per person? Most of us wouldn't have a mortgage anymore. I sure wouldn't. This isn't about us. It's about them.


I really don't want to argue, but I don't think that's right.

According to this source: https://www.cia.gov/library/publications/the-world-factbook/print/us.html

There are about 243,000,000 Americans over the age of 15. (Don't see an over 18 #)

Divide it out and you get a little less than $2900. The population would have to be 2.8 million for the entire US for everybody to receive $250,000.



I didn't do the math. I read it somewhere.

[Chihlidog]

Prages and Tude fail at using the quote function. That hurt my brain. :P

[Prages]

I didn't do the math. I read it somewhere.


Apparently there are a lot of people not doing the math, since that same 'factoid' was actually published in one our local newspapers.

[Mark Wein]

Prages and Tude fail at using the quote function. That hurt my brain. :P


+1 ;D

[xqqmytude]

Prages and Tude fail at using the quote function. That hurt my brain. :P
I tried to edit it. I wouldn't let me take it out of the quote box.

[Mark Wein]

I didn't do the math. I read it somewhere.


Apparently there are a lot of people not doing the math, since that same 'factoid' was actually published in one our local newspapers.


Ouch.

[Prages]

Prages and Tude fail at using the quote function. That hurt my brain. :P


There, I fixed it. :p

I can't internet and Tude can't divide. We make a great team. :D

[xqqmytude]

Prages and Tude fail at using the quote function. That hurt my brain. :P


There, I fixed it. :p

I can't internet and Tude can't divide. We make a great team. :D
I can divide! >:(

I just didn't. :)

[thredlok]

I condone violence and math skills...and I approve this message ;)

It really is sad the state of journalism these days, there once were editors and fact checkers that made sure misinformation wasn't transmitted. Now there area nation full of bloggers and Dan Rather's with a hard on's.

[Mark Wein]

I condone violence and math skills...and I approve this message ;)

It really is sad the state of journalism these days, there once were editors and fact checkers that made sure misinformation wasn't transmitted. Now there area nation full of bloggers and Dan Rather's with a hard on's.


At least a newspaper can he held accountable for bad journalism...any anonymous idiot can start a blog and start spewing filth and misinformation....

[xqqmytude]

I condone violence and math skills...and I approve this message ;)

It really is sad the state of journalism these days, there once were editors and fact checkers that made sure misinformation wasn't transmitted. Now there area nation full of bloggers and Dan Rather's with a hard on's.


At least a newspaper can he held accountable for bad journalism...any anonymous idiot can start a blog and start spewing filth and misinformation....
I can't remember where I read it, but it was a reputable source. I don't really frequent blogs. It's why I didn't bother to fact-check.

[Mark Wein]

I condone violence and math skills...and I approve this message ;)

It really is sad the state of journalism these days, there once were editors and fact checkers that made sure misinformation wasn't transmitted. Now there area nation full of bloggers and Dan Rather's with a hard on's.


At least a newspaper can he held accountable for bad journalism...any anonymous idiot can start a blog and start spewing filth and misinformation....
I can't remember where I read it, but it was a reputable source. I don't really frequent blogs. It's why I didn't bother to fact-check.


I actually wasn't talking about your quote, but the nature of news in general...it seems that bloggers can be pretty influential these days...

[Phil513]

Hehe ;D

http://www.businessandmedia.org/articles/2008/20081006150152.aspx


I hate to say that I approve of a violent act like that but I agree...the guy did have it coming >:(


Asshole.


+1. Dude is a leech on society.

[xqqmytude]

I condone violence and math skills...and I approve this message ;)

It really is sad the state of journalism these days, there once were editors and fact checkers that made sure misinformation wasn't transmitted. Now there area nation full of bloggers and Dan Rather's with a hard on's.


At least a newspaper can he held accountable for bad journalism...any anonymous idiot can start a blog and start spewing filth and misinformation....
I can't remember where I read it, but it was a reputable source. I don't really frequent blogs. It's why I didn't bother to fact-check.


I actually wasn't talking about your quote, but the nature of news in general...it seems that bloggers can be pretty influential these days...
Oh, I know. I was just pointing that out.

[Denverdave]

DJ down 373 points right now...... :(

[xqqmytude]

-458

[Mark Wein]

I haven't been able to look at the news this afternoon and I just saw your numbers...its going to be a LONG year at this rate...

[Mark Wein]

Looks like another rate cut coming up....http://biz.yahoo.com/ap/081007/bernanke_economy.html


Bernanke: Crisis could prolong economic pain
Tuesday October 7, 2:00 pm ET
By Jeannine Aversa, AP Economics Writer
Bernanke: US may be facing prolonged period of economic pain; door opens wider to rate cut

WASHINGTON (AP) -- Federal Reserve Chairman Ben Bernanke warned Tuesday that the financial crisis has not only darkened the country's current economic performance but also could prolong the pain.

The Fed chief's more gloomy assessment appeared to open the door wider to an interest rate cut on or before Oct. 28-29, the central bank's next meeting, to brace the wobbly economy.

ADVERTISEMENT
Bernanke said the Fed will "need to consider" whether its current stance of holding rates steady "remains appropriate" given the fallout from the worst financial crisis in decades.

If the Fed does lower its key rate from 2 percent it would mark an about-face. The Fed in June had halted an aggressive rate-cutting campaign to revive the economy out of fear those low rates would aggravate inflation. Since then, financial and economic conditions have deteriorated, while record-high energy prices have calmed, giving the Fed more leeway to again cut rates.

Many believe the country is on the brink of, or already in, its first recession since 2001.

"The outlook for economic growth has worsened," Bernanke said told the annual meeting here of the National Association for Business Economics.

All told, economic activity is likely to be "subdued" during the remainder of this year and into next year, Bernanke said. "The heightened financial turmoil that we have experienced of late may well lengthen the period of weak economic performance and further increase the risks to growth," he warned.

Consumers -- major shapers of economic activity -- have buckled under the weight of rising joblessness, shrinking paychecks, hard-to-get credit, declining net wealth and tanking home and stock values. All the strains are "now showing through more clearly to consumer spending," Bernanke said.

Inflation numbers are "very ugly right now," Bernanke acknowledged. Even so, he believed slowing growth in the United States and overseas will continue to damp prices for energy, food and other commodities, meaning a better inflation outlook ahead. Inflation will moderate "pretty significantly" over the next few quarters, he predicted.

Meanwhile, worsening sales prospects and a heightened sense of uncertainty have begun to weigh more heavily on businesses, making them more cautious to hire and to invest in their companies, he said.

Employers cut jobs in September at the fastest pace in more than five years, the government reported last week. Payrolls were slashed by 159,000 last month alone. It was the ninth straight month of job losses. A staggering 760,000 jobs have disappeared so far this year.

The financial and credit crises, which took a turn for the worst in September and continue to stubbornly persist, are likely to "increase the restraint on economic activity in the period ahead," Bernanke said.

Even households with good credit histories are now facing difficulties obtaining mortgages or home equity lines of credit, he noted. Banks are also reducing credit card limits and denial rates on auto loan applications are rising, he said.

Banks, too, are feeling the strain of a lockup in lending, particularly in the market for commercial paper.

To that end, the Fed on Tuesday announced a radical plan to buy massive amounts of this short-term debt in an effort to break through a credit clog that is imperiling the economy.

"The expansion of Federal Reserve lending is helping financial firms cope with reduced access to their usual sources of funding," Bernanke explained.

Invoking Depression-era emergency powers, the Fed will begin buying commercial paper -- short-term funding that many companies rely on to pay their workers and buy supplies.

Bernanke believed the Fed's bold actions -- along with the $700 billion financial bailout signed into law by President Bush on Friday -- will help restore confidence in financial markets and help them function more normally.

"These are momentous steps, but they are being taken to address a problem of historic dimensions," he said.

He also defended the timing of the actions by the Fed and the Bush administration. "We have learned from historical experience with severe financial crises that if government intervention comes only at a point at which many or most financial institutions are insolvent or nearly so, the costs of restoring the system are greatly increased. This is not the situation we face today," he said.

[xqqmytude]

Then I suppose you don't want to hear the DJI closed at -508.39. :-\

[Mark Wein]

Then I suppose you don't want to hear the DJI closed at -508.39. :-\


ouch.

I was told by my mortgage broker that bad news would be good for my rate when we finally locked it in, though....I guess I have mixed feelings... :)

[Denverdave]

ouch.

I was told by my mortgage broker that bad news would be good for my rate when we finally locked it in, though....I guess I have mixed feelings... :)


You are definitely buying at the right time - especially since you don't have to sell a house to get into your new one. You probably could not have picked a better time to buy in the past decade....

[xqqmytude]

Then I suppose you don't want to hear the DJI closed at -508.39. :-\


ouch.

I was told by my mortgage broker that bad news would be good for my rate when we finally locked it in, though....I guess I have mixed feelings... :)
I just bought my house a year ago, but I'm considering refinancing. I'm just worried that my house will appraise lower.

I bought my house for less than it was worth but my mortgage is for about what it was worth. I bought it from my grandparents and they paid off my car and a few other small things. I got a mortgage for what they wanted + the price of my car and crap so they got their money back when we closed. It was kind of win-win because it didn't drag down house values in my complex but then a few people foreclosed so it's totally effing things up.

[Denverdave]

I bought my house for less than it was worth but my mortgage is for about what it was worth. I bought it from my grandparents and they paid off my car and a few other small things. I got a mortgage for what they wanted + the price of my car and crap so they got their money back when we closed. It was kind of win-win because it didn't drag down house values in my complex but then a few people foreclosed so it's totally effing things up.


The house south of ours (across the street) went into foreclosure in May. The couple that lived there bought another house and could not sell this one fast, so they walked about a year ago. The house stood empty for about 7 months until the back finally dealt with it. It's been for sale ever since. I wish I had the money, that would make a nice investment property since I can keep a close eye on it. There have not been too many foreclosures in our subdivision (that I know of), but nothing here is selling quickly...

[Mark Wein]

ouch.

I was told by my mortgage broker that bad news would be good for my rate when we finally locked it in, though....I guess I have mixed feelings... :)


You are definitely buying at the right time - especially since you don't have to sell a house to get into your new one. You probably could not have picked a better time to buy in the past decade....


It seems to be working out for us, although I am nervous about the future...our business is still doing well but I am very much aware that we are a luxury for most people that could be cut out if the economy really goes down the tubes...

[Mark Wein]

Then I suppose you don't want to hear the DJI closed at -508.39. :-\


ouch.

I was told by my mortgage broker that bad news would be good for my rate when we finally locked it in, though....I guess I have mixed feelings... :)
I just bought my house a year ago, but I'm considering refinancing. I'm just worried that my house will appraise lower.

I bought my house for less than it was worth but my mortgage is for about what it was worth. I bought it from my grandparents and they paid off my car and a few other small things. I got a mortgage for what they wanted + the price of my car and crap so they got their money back when we closed. It was kind of win-win because it didn't drag down house values in my complex but then a few people foreclosed so it's totally effing things up.


I would probably look pretty hard at whats happening price wise in your neighborhood...the house we just put an offer in on (if they take the offer) will be selling to us at 40% lower than their purchase price in 2005.....

[xqqmytude]

ouch.

I was told by my mortgage broker that bad news would be good for my rate when we finally locked it in, though....I guess I have mixed feelings... :)


You are definitely buying at the right time - especially since you don't have to sell a house to get into your new one. You probably could not have picked a better time to buy in the past decade....


It seems to be working out for us, although I am nervous about the future...our business is still doing well but I am very much aware that we are a luxury for most people that could be cut out if the economy really goes down the tubes...
Yeah. I'm wondering if the Jazzercise center I teach at is going to be forced to close. We have been getting people coming in to cancel all the time for the last couple of months. I was talking to the center owner at our district meeting this weekend and she says that they write off a loss every year. She has yet to make ANY money from that center so it only stands to get worse. It's not a major source of income for me, but I can see why you're so scared.

[xqqmytude]

Then I suppose you don't want to hear the DJI closed at -508.39. :-\


ouch.

I was told by my mortgage broker that bad news would be good for my rate when we finally locked it in, though....I guess I have mixed feelings... :)
I just bought my house a year ago, but I'm considering refinancing. I'm just worried that my house will appraise lower.

I bought my house for less than it was worth but my mortgage is for about what it was worth. I bought it from my grandparents and they paid off my car and a few other small things. I got a mortgage for what they wanted + the price of my car and crap so they got their money back when we closed. It was kind of win-win because it didn't drag down house values in my complex but then a few people foreclosed so it's totally effing things up.


I would probably look pretty hard at whats happening price wise in your neighborhood...the house we just put an offer in on (if they take the offer) will be selling to us at 40% lower than their purchase price in 2005.....

Yeah. I've been watching Zillow. My house is currently one of the most expensive in the neighborhood (I live in a condo complex, BTW, so it's a pretty small margin) but it's lower than it was when I bought it. Of course, it appraised higher than Zillow had it valued when I bought it too.

[Mark Wein]

ouch.

I was told by my mortgage broker that bad news would be good for my rate when we finally locked it in, though....I guess I have mixed feelings... :)


You are definitely buying at the right time - especially since you don't have to sell a house to get into your new one. You probably could not have picked a better time to buy in the past decade....


It seems to be working out for us, although I am nervous about the future...our business is still doing well but I am very much aware that we are a luxury for most people that could be cut out if the economy really goes down the tubes...
Yeah. I'm wondering if the Jazzercise center I teach at is going to be forced to close. We have been getting people coming in to cancel all the time for the last couple of months. I was talking to the center owner at our district meeting this weekend and she says that they write off a loss every year. She has yet to make ANY money from that center so it only stands to get worse. It's not a major source of income for me, but I can see why you're so scared.


I've been training my recpetion staff to be more proactive to get payments in and we hold a credit card as security against someone walking on their bill but that does you no good if the card is maxed out and they disappear.

I've spent the last year looking at things in the worst possible light just to be prepared for a recession (getting rid of car payments, cutting extras, trimming business expenses) but you can only do that so much. Things are still going well here (this has been our best year to date) but I can't control the local economy :(

[Mark Wein]

Then I suppose you don't want to hear the DJI closed at -508.39. :-\


ouch.

I was told by my mortgage broker that bad news would be good for my rate when we finally locked it in, though....I guess I have mixed feelings... :)
I just bought my house a year ago, but I'm considering refinancing. I'm just worried that my house will appraise lower.

I bought my house for less than it was worth but my mortgage is for about what it was worth. I bought it from my grandparents and they paid off my car and a few other small things. I got a mortgage for what they wanted + the price of my car and crap so they got their money back when we closed. It was kind of win-win because it didn't drag down house values in my complex but then a few people foreclosed so it's totally effing things up.


I would probably look pretty hard at whats happening price wise in your neighborhood...the house we just put an offer in on (if they take the offer) will be selling to us at 40% lower than their purchase price in 2005.....

Yeah. I've been watching Zillow. My house is currently one of the most expensive in the neighborhood (I live in a condo complex, BTW, so it's a pretty small margin) but it's lower than it was when I bought it. Of course, it appraised higher than Zillow had it valued when I bought it too.


I'm not sure how much stock I put in Zillow...I would think you can look up the sales in your area and get a better picture than your "Zestimate" or whatever they call it...

[Mark Wein]

i don't know why this guy continues to piss me off so much... >:(


http://www.latimes.com/news/local/los_angeles_metro/la-fi-hearings7-2008oct07,0,5531703.story?track=rss