Bloomberg reports that the US House of Representatives Friday passed legislation that would give regulators the power to effectively ban Wall Street bonuses which are deemed to encourage excessive risk taking.
'You don't have a gun; that's good'. That's how former Lehman Brothers CEO Dick Fuld recently greeted two Reuters reporters, as they came to his home for an exclusive interview.
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The Guardian reports that 'a breakdown of communication at the highest level' between London and Washington lead to the collapse of Lehman Brothers, which, in turn, ushered in the worst banking crisis for over 80 years.
Here's something sent in by a former Lehman Brothers employee:
Here's an interesting Lehman e-mail exchange that has been unearthed by the media from the material submitted to Congress for the House Commitee on Oversight and Government Reform hearings on the financial crisis (the names of some of those involved in the exchange have been xxx'd out for privacy reasons).
Bloomberg is quoting Ellen Zentner, a senior economist at Bank of Tokyo-Mitsubishi UFJ in New York, who blames current market chaos, in part, on the fall of Lehman Brothers: 'It's a collapse heard around the world. It's probably one of the worst decisions the Fed ever made - to save everybody else but Lehman'.
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Bloomberg reports that MF Global CEO Jon Corzine, who is almost done with a restructuring program that will see as many as 15% of the firm's 3,200-person workforce laid-off, has said that headcount is likely to go back up in the coming 2 years.
Although CLSA bank analyst Michael Mayo has at last secured a meeting with Citi executives (after apparently waiting almost two years for the call), he's showing no let-up in his criticism of the firm.