Tuesday 27 September 2016

Lehman Brothers collapse: Where are the key figures now?

Published 15/09/2015 | 14:35

Dick Fuld, disgraced chief executive of Lehman Brothers, will be played in the drama by Corey Johnson. Photo: Getty Images
Dick Fuld, disgraced chief executive of Lehman Brothers, will be played in the drama by Corey Johnson. Photo: Getty Images

Where are the key figures in the collapse of Lehman Brothers which filed for Chapter 11 bankruptcy protection on September 15, 2008.

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Dick Fuld

Lehman Brothers’ pugnacious chief executive was pilloried as the face of America’s financial failures following the collapse of the bank he led for 14 years.

Mr Fuld was reportedly punched in the face in the Lehman gym shortly after the bankruptcy announcement and soon afterwards disappeared from view, barring the occasional appearance in front of the US committees set up to explore the causes of the crash.

He has refused to shoulder the blame for the crisis, although he said earlier this year that he still thinks about the bank - and the “perfect storm” that led to its demise - every day.

He still works at Matrix Advisors, a boutique firm that he launched in 2009 to carry out consultancy work for mergers and acquisitions.

Ben Bernanke

Ben Bernanke, who held the reins of the Federal Reserve as Lehman went to the wall, spent another six years at the central bank after the financial crisis.

US Federal Reserve chairman Ben Bernanke
US Federal Reserve chairman Ben Bernanke

He was named Time magazine’s person of the year in 2009 for his "creative leadership" during the crash. The Fed has yet to raise interest rates from the record-breaking lows that Mr Bernanke's Fed introduced.

Since leaving the central bank in 2014, he has taken up advisory roles at the bond group Pimco, the investment outfit Citadel and the Brookings Institution. His memoirs, entitled The Courage to Act, will be released in October.

For those unable to attend his frequent speaking engagements, Professor Bernanke occasionally delivers his pearls of economic wisdom via Twitter.

Henry Paulson

US Treasury Secretary Hank Paulson is trying to hammer out a deal to buy toxic assets
US Treasury Secretary Hank Paulson is trying to hammer out a deal to buy toxic assets

Henry “Hank” Paulson stepped down as Treasury secretary in January

2009 when George W Bush left office, having stepped in to rescue the mortgage groups Fannie Mae and Freddie Mac on behalf of the US government and set up the Troubled Asset Relief Program (TARP) to support the banks.

He tried to smooth the path for Barclays to buy Lehman as a live business, but the British bank dropped out when it could not get certain guarantees from regulators. It bought parts of the bankrupt firm days later.

Mr Paulson now chairs the Paulson Institute at the University of Chicago, which was founded in 2011 to support Chinese-US relations.

'Cautious optimism': Tim Geithner. Photo: Getty Images
'Cautious optimism': Tim Geithner. Photo: Getty Images

His latest book, “Dealing With China”, was published in May. It covers his decades of negotiating with the nation during his time leading Goldman Sachs and later within the US government.

Tim Geithner

Ben S. Bernanke, chairman of the U.S. Federal Reserve, left, walks with Timothy Geithner, president of the Federal Reserve Bank of New York, during a break at the Federal Reserve Bank of Kansas City annual symposium near Jackson Hole, Wyoming, US

Jeb Bush
Jeb Bush

Ben Bernanke and Tim Geithner at Jackson Hole  Photo: Bloomberg News

Tim Geithner was president of the New York Fed during the authorities’ doomed attempts to rescue Lehman. He then replaced Mr Paulson as Treasury secretary, serving during Barack Obama’s first term to co-ordinate the administration’s response to the financial crisis.

Since leaving government in 2013, he has taken up the post of president at the private equity house Warburg Pincus. Geithner has also published his own book on the crisis, entitled Stress Test.

His unexpurgated thoughts on the sovereign debt crisis - or as he put it, “a f***ing disaster in Europe” - were leaked last year.

Jeb Bush

Jeb Bush joined Lehman as an adviser after leaving his post as governor of Florida in 2007. Weeks before the bank’s collapse, he flew to Mexico in a failed attempt to get the billionaire Carlos Slim to inject rescue funds.

Dick Fuld reportedly considered asking Mr Bush to phone his brother - George W Bush, the President at the time - to help prop up the bank during its final throes, but eventually decided against it. 

Mr Bush also played a role at Barclays following its acquisition of parts of Lehman, earning up to $2m a year to meet clients around the world. He resigned in 2014 to launch his campaign for the Republican nomination ahead of the 2016 presidential race.

 

 

 

 

 

 

Telegraph.co.uk

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