Former Lehman Brothers CEO, Richard Fuld Testimony, Blames Feds

by NowPublic Staff | September 1, 2010 at 10:52 am

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Richard Fuld Testimony: September 1, Financial Crisis Inquiry Commission (FCIC) - Former Lehman Brothers CEO, Blames Federal Regulators

For Richard Fuld it was a rare moment to state his case on what happened surrounding the collapse of Lehman Brothers. Richard Fuld was the CEO of Lehman Brothers for 14 years and worked at the Wall Street Investment bank for 40 years.

Richard Fuld, FCIC Testimony Transcript (pdf)

Richard Fuld, providing testimony to the Financial Crisis Inquiry Commission (FCIC), blamed federal regulators for not coming to the aid of Lehman Brothers and preventing its collapse, during the crisis on Wall Street in 2009.

Lehman’s demise was caused by uncontrollable market forces and the incorrect perception and accompanying rumours that Lehman did not have sufficient capital to support its investments," Fuld told the Financial Crisis Inquiry Commission in Washington, D.C.

Fold focused on particular day, Sunday September 14, 2009. The day federal regulators told Richard Fuld and Lehman Brothers to declare bankruptcy before the markets opened in Asia.

On that same day Fuld said, Federal Regulators expanded the type of collateral banks could declare in order to qualify for federal loans at discounted rates. Fuld said that expanded definition did not include Lehman Brothers.

Only Lehman was denied that expanded access. I submit, that had Lehman been granted that same access as its competitors, even as late as that Sunday evening, Lehman would have had time for at least an orderly wind down or for an acquisition which would have alleviated the crisis that ensued," Fuld said.