The Fourteenth Banker Blog

May 3, 2010

Lying at Lehman

Filed under: Uncategorized — thefourteenthbanker @ 2:34 PM

What is a million between friends?

http://www.businessweek.com/magazine/content/10_19/b4177056214833.htm

This can only be called what it is. Delusion. Delusion about self, society, morality, values and anything else you can name. These are symptoms of a grave illness which is too common among those in power. In fact, the illness may be the requisite to power.

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5 Comments »

  1. Which brings me to Alan Greenspan:

    From the Huffington Post:
    As top Federal Reserve officials debated whether there was a housing bubble and what to do about it, then-Chairman Alan Greenspan argued that the dissent should be kept secret so that the Fed wouldn’t lose control of the debate to people less well-informed than themselves.

    “We run the risk, by laying out the pros and cons of a particular argument, of inducing people to join in on the debate, and in this regard it is possible to lose control of a process that only we fully understand,” Greenspan said, according to the transcripts of a March 2004 meeting.

    http://www.huffingtonpost.com/2010/05/03/greenspan-wanted-housing_n_560965.html

    Sadly, I think this sums up exactly what we’re up against. Simon & James (page 148) point out the wrong lesson taken from the saving of LTCM. These are supposed to be the “Best and the Brightest”. (Anyone seen the film “Smartest Guys in the Room”?) I used to think this mindset was due to our Calvinist background – the “if you’re rich, it’s because God smiled on you, and if you’re poor, you’ve pissed God off.” It makes it easier to live with yourself (assuming you aren’t already a full-blown sociopath). You begin to take the attitude that they deserve to be screwed over, because they aren’t as smart or sophisticated as you.

    The whole thing is sick and worse, it’s destroying us from the inside out.

    Comment by Sandi — May 3, 2010 @ 5:58 PM | Reply

  2. The Lehman news (http://www.socialnews.biz/tag/Lehman%2BBrothers) is almost as ugly as the Goldman news (http://www.socialnews.biz/tag/Goldman%2BSachs). It is kind of fun to compare. The real problem is Congress. It has to be assumed that these guys will run wild if you let them. If we limited leverage and required equity in lending, then the banks would not have these junky products to sell. I almost think that CDOs are not even the problem. The problem is allowing the origination of junk loans. Thanks for having this blog to tell it like it is.

    Comment by dantes1807 — May 3, 2010 @ 8:34 PM | Reply

  3. Dantes1807 – Congress is the Street’s ever faithful lapdog. They would never dream of biting the hand that pours money into their campaign coffers.

    Comment by Sandi — May 3, 2010 @ 9:36 PM | Reply

  4. “Ignorant CEO paid $500M for what? Ignorance!! A report in NY Times reads. “…A footnote (in bankruptcy examiner’s report) in the report states that Mr. Fuld’s lawyer informed the examiner that he did not use a computer and only accessed e-mails on his Blackberry but could not open up attachments, including one that went into the Repo 105 deals in March 2008…” http://dealbook.blogs.nytimes.com/2010/03/15/why-did-ex-lehman-executives-talk-to-examiner/#more-193647

    Such claims are made because someone somewhere is ready to believe in them!

    Comment by alwaysnaive — May 4, 2010 @ 12:34 AM | Reply

  5. […] Do support the Blog by calling by.  Here’s a taste of what they are writing about: Lying at Leyman […]

    Pingback by The Fourteenth Banker « Learning from Dogs — May 10, 2010 @ 7:11 AM | Reply


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