Lehman Bros. Chairman/CEO Richard S. Fuld, Jr. was sickeningly unapologetic during Congressional hearings today. The effects this greedy man and others like him on the lives of ordinary people are only beginning to be felt. This was sadly made real in a conversation I had at the grocery store check-out today.
Fuld was at a loss to explain billions in bonuses and a a compensation system that he reluctantly conceded paid him about $350 million between 2000 and 2007 even as the company proceeded full speed towards disaster.
"We had a compensation committee that spent a tremendous amount of time making sure that the interests of the executives and the employees were aligned with shareholders," Fuld said.
The house panel presented internal documents revealing Sept. 11, Lehman authorized "special payments" worth over $23 million for top executives four days before Lehman declared bankruptcy. It was this bankruptcy that began the torrent of financial instability, bank, and business failures that we are facing today.
Most disturbing was the emotional flatness of Mr. Fuld's responses. While members of the congressional panel were rightfully indignant, Mr. Fuld's responses were guarded, cold, and often less than fully honest.
While Mr. Fuld said he took responsibility for the failure of his company in his opening remarks, he failed to acknowledge any specific mistakes.
I often take the opportunity when I'm out doing errands to complain about high prices and the state of the economy, and engage my neighbors in a bit of political dialogue. After agreeing with my declaration of disapproval for all things Republican, the woman ahead of me in the check-out line said with a note of real sadness that because of recent losses in the stock market they may not be able to pay for her son's last year in college.
Mr. Fuld, I hope there is justice someday for you and your ilk -- that you will spend the rest of your life being sued and being forced to sell your several homes, your jet, your helicopter, your yacht, and your multi-million dollar art collection. Perhaps you could sell just one painting or valuable piece of antique furniture and mail a check to this one honest, hardworking Michigan family so they could keep their son in school.