Ex-Lehman chief blames crisis on perfect storm | Fin24
 
In partnership with
Loading...

Ex-Lehman chief blames crisis on perfect storm

May 31 2015 12:30
financial crisis

(financial crisis, shutterstock) (Shutterstock)

Related Articles

German central bank clear of Lehman debts

Lehman is back

 

New York - In his first public appearance since 2008, former Lehman Brothers chief Richard Fuld on Thursday blamed the financial crisis on a "perfect storm" of factors.

Fuld, who has kept a low profile since his firm's failure in September 2008 helped set off the biggest financial firestorm since 1929, said at an investment conference that the crisis was the result "not just of one single thing."

"It's all these things taken together," he said, adding that government policies designed to boost home ownership had unintended consequences, such as swelling home prices that led many families to take on too much debt.

Fuld said Lehman's demise was a "mandated bankruptcy" and that Lehman "was not a bankrupt company."

At the same time, Fuld suggested he also bore some responsibility for his firm's fate.

"Did we fall prey to some other agendas?" he asked. "I'll leave it at that."

Fuld at times waxed nostalgic, as when he recounted Lehman growth into a powerhouse on Wall Street under the credo that "everything was about the client."

He expressed concern that growing income inequality was harming the "belly of America" and said he worries about everything from slowing Chinese growth to the emergence of the Islamic State group and the aggressiveness of Russian President Vladimir Putin.

"None of these things are any individual surprise, but taken together, they're fraying the fabric of our system," he said.

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Comments have been closed for this article.
 

Company Snapshot

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

Would you switch to a bank that rewarded you for 'good' financial behaviour?

Previous results · Suggest a vote

Loading...