Lehman CEO Blames Fed for Financial Crisis
By Imperator, Newser Staff
Posted Sep 1, 2010 12:02 PM CDT
Promoted on Newser Sep 1, 2010 9:09 PM CDT
Richard S. Fuld, Jr., former Chairman and Chief Executive Officer of Lehman Brothers, testifies before the House Financial Services Committee regarding financial reform on Capitol Hill in Washington.   (AP)

(User Submitted) – In a remarkable case of the pot calling the kettle black, Lehman Brothers' former CEO Richard Fuld pointed a finger at the US Federal reserve today, saying it worsened the financial crisis in September 2008. Testifying at a hearing, Fuld blamed the Fed for letting the investment bank fail. He said, “Only Lehman was denied that expanded access” that would have allowed for a more orderly wind-down of its business. Fuld continues to deny that the bank took too much risk and hid its true financial condition through off-balance-sheet financing.

Also today, the FCIC released hundreds of emails and documents from the period leading up to the bank's collapse, which the FCIC chairman says reveal what appears to be a “conscious policy decision not to rescue” Lehman. In particular, the Financial Times notes an email from Chief of Staff Jim Wilkinson to then-Treasury Secretary Hank Paulson that read, “I just can’t stomach us bailing out Lehman. Will be horrible in the press.” Read the full article.

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Showing 3 of 15 comments
fancygapva
Sep 2, 2010 2:57 PM CDT
Lehman was a competitor of Goldman-Sachs, Paulson's former company. It did seem strange and abrupt when they passed TARP over a weekend and poured money on the failing bank/investment firms...except they didn't rain on Lehman. Well, not strange, maybe more like ummmm, favoritism?
sirgil
Sep 2, 2010 1:15 PM CDT
Do the narcoleptic Wizards of Wall Street, ever do anything wrong!! Get the facts straight, it is not the Financial Crisis of 2008, it started in 2006, but was kept under the radar by Streeters, Federals, and some sovereign players. There are plenty to blame, problem is not enough gallows for all of them.
myflap.blow
Sep 1, 2010 11:48 PM CDT
Dick Fluid Sorry, I just wanted to type that. I'm dyslexic and immature. But this guy is dick fluid.