Friday, May 29, 2015

Lehman Brothers. The former CEO evokes a forced bankruptcy – Ouest-France

Richard Fuld, the former boss of Lehman Brothers, whose bankruptcy was the trigger of the financial crisis, said on Thursday at a conference in New York (USA), the establishment n was not at the edge of bankruptcy filing in September 2008 (see box).

“One of the best Wall Street banks’

” I have always said, and this is proven now that Lehman was not in bankruptcy in September 2008 ‘ said Richard Fuld, 69, in his first public appearance since the collapse of the investment bank there six and a half years. “I do not count the time spent with the Congress” , he began, referring to the tense hearings before US lawmakers very angry after the bankruptcy of Lehman Brothers.

In a speech, part of which was broadcast on the American channel CNBC financial information, Richard Fuld spoke of a “forced bankruptcy” , ensuring that Lehman Brothers was “One of the best Wall Street banks’ , with a culture of ” real success “.

According to the former banker, the bankruptcy of Lehman Brothers and was due to a combination of unfavorable factors: “It’s not one thing that caused the 2008 crisis (…). All Driver itions were met to trigger a cataclysm. ”

The symbols of Wall Street’s bad habits

Richard Fuld also castigated the attitude of the US government “who wanted everyone realizes his perception of the American Dream “, that is to say, to own a property. Particularly singled out, abundant liquidity and interest rates at very low levels that, according to former boss, have encouraged banks to lend money to insolvent households without worrying about the consequences. “There is much to say (but) enough! It is time to move forward “ is still loose the former CEO.

The return of Richard Fuld on the public stage comes as the US press speculation that he wants to create a new investment fund. For his part, the man gave no indication of his personal projects. To recall, shortly after the fall of Lehman Brothers, Richard Fuld and the bank have been portrayed by the American authorities as symbols of Wall Street mistakes that led to the worst financial crisis since 1929.

Lehman Brothers was forced into bankruptcy Sept. 15, 2008, crushed by the weight of its exposure to subprime mortgage, called “subprime” . At the time, she was the fourth US bank. Since then, regulators have tightened regulations limiting speculation and forcing banks to strengthen their safety cushion to avoid a new financial crisis of great magnitude.


No comments:

Post a Comment