Daily Flog: Celebrity roast of Lehman on Capitol Hill
Passing through the four stages of our grief with lightning speed, Wall Street became Fall Street, then Wail Street, and now Bail Street.
But there's never enough money to satisfy these self-proclaimed victims. Late last week, the Wall Street Journal's Robert Frank reported, in "Wealthy Are Afraid They'll Run Out of Money":
Now it's time for others to look closely. Who will lose the blame game? Setting up today's scheduled grilling of ex-Lehman's ex-CEO Richard Fuld by Henry Waxman's House committee, this morning's Wall Street Journal peers into the what exactly happened at the bankrupt investment bank's HQ on Avenue of the Americas.
We were fooled, yes, but we won't get Fuld again — assuming he even shows up. As of late last week, Waxman was still stonewalled on his September 18 request for Fuld's and Lehman's e-mails and memos. Check out the PDF of Waxman's scathing September 26 letter to Fuld.
But others already have some details on who and what moved in Lehman's bowels.
In "The Two Faces of Lehman's Fall: Private Talks of Raising Capital Belied Firm's Public Optimism," Carrick Mollenkamp, Susanne Craig, Jeffrey McCracken, and Jon Hilsenrath reveal inside dealings and double-talk at the investment bank's HQ.
That story's just a biopsy. There's enough blood and garbage on the Street to keep crime-scene investigators enthused for years. Is there a forensic proctologist in the house?
For one thing, despite this weeper from the WSJ — 'The Lehman Stock Slide Hits Home: Employees Face $10 Billion in Losses' — Fuld and others have stashed cash where the sunshine laws don't shine.
There's a big difference between money on paper and cash in the wallet. Yes, the value of Fuld's stock cache has bottomed out. But Fuld cashed in for more than $50 million during only two days of insider sales of Lehman stock before it began its last precipitous slide in 2007, according to SEC records (see illustration above).
Wonder if Waxman will bring up that profit-taking with Fuld later today. As Reuters noted yesterday:
But first . . .
NO PARTICULAR ORDER:
Agence France Presse: 'JPMorgan blamed for Lehman collapse in court documents: report'
Wall Street Journal: 'Bailout's Bid to Limit Executive Pay Will Be Tough to Realize'
N.Y. Times: 'Full of Doubts, U.S. Shoppers Cut Spending'
House Committee on Oversight and Government Reform: 'Chairman Waxman Announces Hearings on Financial Meltdown'
Oct. 6: Lehman bankruptcy and AIG bailout, Day One
Oct. 7: Lehman bankruptcy and AIG bailout, Day Two
Oct. 16: Regulation of hedge funds
Oct. 22: Breakdown of credit rating agencies
Oct. 23: Role of federal regulators
IOL (South Africa): 'Racism: the elephant in the US polling booth'
L.A. Times: 'Frank talk of Obama and race in Virginia'
Wall Street Journal: 'The Lehman Stock Slide Hits Home: Employees Face $10 Billion in Losses'
Caucasian Knot (Moscow): 'Authorities in Ingushetia terrorize the population'
Wall Street Journal: 'China to Allow Short Selling on Trial Basis'
The Age (Australia): 'OJ Simpson isolated in jail "for his own safety" '
N.Y. Daily News: 'Friends of Mayor Bloomberg make contributions to a third party'
China Digital Times: 'Chinese Cities Wake up to a New Superfood: Yak Milk'
N.Y. Post: 'SUIT SLAMS DONUT-COP "CRULLER-TY" '
N.Y. Daily News: 'Brad Pitt, Angelina Jolie seem happy together in NYC'