Idiot of the day: Dick Fuld
Dick Fuld wins the idiot award for his claim that he had “absolutely no recollection whatsoever” about the Repo 105 transactions while he was CEO." If he did not know anything about this 50 Billion dollar transaction as a CEO, then what did he know at all? Or, if he knew it and then lost recollection, maybe he should keep quiet about his memory problem for fear of jeopardizing his new lucrative job at Legend Securities? They don't want employees with a memory problem who can't remember what position they opened yesterday. Maybe we should check if Mr. Fuld still remembers his name and today's date?
P.S. But the relief is coming soon for Mr. Fuld and Lehman. Naked Capitalism has this breaking news:
"The market responded with enthusiasm to reports that the Tooth Fairy has agreed to acquire Lehman. The purchase price has not yet been determined and will be set by Dick Fuld wishing upon a star, clicking his heels three times, and being transported back to that magical place where Lehman still sells for over $70 per share.
In related news, Lehman has agreed to sell all of its level III capital, including CDOs, ABSs, pet rocks, baseball cards, slightly used condoms, and credit default swaps written by MBIA and Ambac. Lehman’s level III capital will be acquired for 150% of its face value by Tinkerbell, who will carry it off to Neverland to be fed to a crocodile. Lehman is financing 90% of the acquisition at an interest rate that has not been announced; Tinkerbell’s up-front payment consists of a handful of pixie dust, three crickets, and a bullfrog. Analyst Dick Bove estimates that the bullfrog could eventually be transformed into three princes and a pumpkin coach. The deal gives Lehman no recourse to any of Tinkerbell’s assets other than the Level III capital. If Tinkerbell defaults, Lehman’s successor entity will stick its hand down the crocodile’s throat and attempt to get it to regurgitate. The firm’s historical value-at-risk analysis shows that sticking your hand down a crocodile’s throat is completely safe."
Fair and to the point.