Fuld's Testimony

A House Sub-Committee had fun yesterday; it's members had Fuld, the CEO of now bankrupt Lehman Bros., answer its questions.  The press covered the hearing will glee, knowing that it would make headlines and lead stories for an angry public.  The problem?  The press did not put the testimony in any sort of context.  FUD, a wealthy man, will be sued.  He is being investigated by the Justice Department, the SEC, and state attorney generals and is in the cross-hairs of every securities class action attorneys in the country.  This, of course, means that he has been carefully advised on what he can and cannot say to minimize his litigation exposure.  When the press bemoans his failure to "take blame" and his willingness to "blame everyone else," it is laughable.  He would be foolish to admit anything in the face of these prosecutions.  If he "takes blame" it will be in exchange for some kind of deal, many years from now. With that perspective, it makes puts his answers to "Is it fair?" questions in context.