The Home Front

Lehman E-Mail: Execs Mock Idea of Bonus Cut

By Luke Mullins

Posted: October 6, 2008

Just before Richard Fuld, the CEO of the now bankrupt Lehman Brothers, testified on Capitol Hill Monday, House Committee on Oversight and Government Reform staffers distributed a handful of E-mails that they had obtained during their investigation of the company.

Perhaps the most damaging one is the following. In it, two executives—Fuld and George H. Walker, who sits on Lehman’s executive committee and is a cousin to President George W. Bush—dismiss a recommendation that top management forgo its bonuses for the year.

Beggar

"Um, I fail to see what the 'scandal' here is". (from KMan of NY)

It is scandalous to award yourself and your buddies millions in bonuses when the entity for which you are responsible is on the rocks.

It may be in the genetic code of family Bush to reward failure - but that doesn't make it right.

A Lewis of CA @ Oct 12, 2008 16:48:21 PM

As i read it, two people went to the firm's board to demand more compensation for themselves. Their boss was embarrassed. I wonder if he knew this was coming. The CEO understood the issue - these people wanted more for themselves.

Should the board of lehman brothers have been focused on paying these people more in June?

I understand the anger towards Wall Street and the Bushes, but there is nothing here.

Fred of CA @ Oct 11, 2008 19:37:33 PM

I had a Lehman bond...

Everybody is all jittery about the stock market, as they should be. What about the simple folks that that bought a Lehman Brothers bond? My investment counselor put me in a low risk investment that paid a 5.6% return. I was comfortable with that because after all, Lehmand has been around for 160 years and I was helping folks buy a house. I was all warm and fuzzy until Monday, after I had a hurricane that sent a tree into my house, my counselor called to inform me about the bankruptcy

I am a retired teacher and can't afford a hit like this and my money is gone. It is very small potatoes compared to the big investors but I have a voice. I am mad as hell and want my money back!

If Lehman goes to bankruptcy court, what are the chances that the bonds will have to be repaid?

Patricia Bresler of TX @ Oct 11, 2008 00:10:50 AM

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The Home Front

The Home Front

Associate Editor Luke Mullins tracks the treacherous housing market and explains how to unload a five-bedroom McMansion or even find that dream home.

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