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COFES Blog
Nov
6
Written by:
Russ Henke
11/6/2008 7:18 AM
Further to the blog entries in this space of November 4, 2008, entitled, “On Executive Pay & the Bailout” and of September 18, 2008, called, “Poster Child”, the following information appeared on the news wires late on November 5, 2008, paraphrased here:
Richard Fuld will now step down as Lehman Brothers CEO by the end of the year, and he won't receive severance or a bonus. He will then stay on as chairman of the board. Fuld has been a target of public outrage over risky practices on Wall Street which helped send the US economy spiraling into turmoil.
New York State Comptroller Thomas DiNapoli has accused Fuld of leading Lehman to its Chapter 11 filing on September 15, 2008. "Mr. Fuld's decisions drove the company toward ruin, as his board stood idly by," DiNapoli argues in court papers filed late November 4, 2008, asking a bankruptcy judge to appoint an independent investigator in the case.
Comptroller spokesman, Jim Fuchs, said Fuld’s resignation would be a good first step. While Fuld had offered to resign on September 20, Chief Restructuring Officer Bryan Marsal apparently asked Fuld to stay until the end of the year “to help with the transition.”
Fuld, along with 11 former or current Lehman managers or officers, has been subpoenaed by federal prosecutors in three grand jury investigations. When Fuld appeared on October 6, 2008 in front of the House Oversight and Government Reform Committee, he faced outrage and sarcasm.
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