Lehman Brothers approved $100 million executive payout days before declaring bankruptcy.
By on Oct 14th, 2008 at 1:15 pm
Lehman Brothers approved $100 million executive payout days before declaring bankruptcy.
The Times of London reports that just three days before going bankrupt, the board of Wall Street financial giant Lehman Brothers “signed off on more than $100m (£59m) in payouts to five top executives.” In the two years prior to Lehman’s collapse, the same executives “were generously remunerated while overseeing forays into risky commercial real-estate investments that helped to bring the company down.”
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Can we go after their cars, homes, cabins, investment portfolios?/ Class action suit anyone?
October 14th, 2008 at 1:17 pmTo paraphrase McNasty: ” Sue, sue, sue!”
October 14th, 2008 at 1:19 pmWell, isn’t that nice….
NOT.
String ‘em up.
October 14th, 2008 at 1:20 pm.
Nothing like off shore banks to stash the loot in… NO?
.
October 14th, 2008 at 1:21 pmOn the other hand, consider that the 100 mill had to be split five ways, so they only got like 20 mil each, poor babies.
October 14th, 2008 at 1:21 pmOK, isn’t there a bankruptcy judge who can order that money remanded back to the creditors, stockholders, etc?????
October 14th, 2008 at 1:23 pmIs it a criminal offense?
October 14th, 2008 at 1:25 pmAh yes — gotta issue them golden parachutes before the plane crashes.
Besides the investors getting crapped on, I wonder how many non-executive employees went down in flames?
October 14th, 2008 at 1:26 pmHow about simply repossessing their estates, tie them up in court, and deporting them and/or ‘detaining’ them until such time as their cases are scheduled.
This qualifies as a domestic terrorism case if there ever was one; their actions contributed directly to a threat on our national solvency and economic security. DHS should arrest these people and rendition them while their particular cases are resolved….
..I’m thinking 10-15 years, as per our administration’s usual pace of ‘justice.’
October 14th, 2008 at 1:27 pmRemember, this same thing happened at the beginning of Bush’s reign, with the Enron scandal.
Bush has been very good to his base.
October 14th, 2008 at 1:29 pmI think I remember back when this whole bailout was passed (what was it, a week ago?) that all contracts that were in place prior to the bailout would remain in place, including golden parachutes and bonus payments, and only new post-bailout contracts would include the executive pay limits.
Given that it took two week for passage, any bets on who didn’t get a retro contract? I’m guess zero.
PEACE
October 14th, 2008 at 1:30 pmDisgusting! These people have allowed greed to rule them. I’ve got news for you guys, you can’t take it with you, but your reputation will remain. Greed will be your legacy.
October 14th, 2008 at 1:30 pmI think we know 5 candidates for McCain’s Commerce Secretary now
October 14th, 2008 at 1:36 pmoldtree Says:
——————————————————————————–
Is it a criminal offense?
No. If the theft is big enough, it’s legal.
October 14th, 2008 at 1:38 pmThis kind of thing really pisses me off. Bankruptcy courts need the authority to revert this kind of “rifling of the coffers”. The court should have the power to get that 100mil back and pay creditors with it.
October 14th, 2008 at 1:38 pmThe Bankruptcy Court has the authority to recover the money under its strong arm authority. Indeed, they typically review such transactions with insider payments for about a year before filing.
October 14th, 2008 at 1:40 pmNYT’s Dealbook reported:
Lehman Brothers is opposing its creditors’ request for documents related to the investment bank’s operations before its bankruptcy filing, saying that the demands are inappropriate and oppressive, according to court documents.
October 14th, 2008 at 1:41 pmHow much of the money from the Enron theft was actually recovered? No matter what the courts do, the money stolen from Lehman Bros. is already safely tucked away in a Cayman Island bank account.
October 14th, 2008 at 1:44 pmThey’re just following the policy of their greatest benefactors, the Republican Party. The policy is you REWARD failure, incompetence, theft, and greed. Just look at EVERYONE Bush has ever appointed to ANYTHING.
October 14th, 2008 at 1:50 pmIf I got $20 million I absolutely didn’t need ( except to satisfy my desire to accrue as much money as I could) what might I do with it?
Would I set up a small-business investment/credit fund? Would I help out a needy community? Would I pay for a clinic or establish a scholarship fund? Would I renovate my house or have another built. thus employing some people in the hard hit housing sector?
Or would I buy up some foreclosed homes at 20 cents on the dollar and sit on them till the market is improved by taxpayer investment mandated by the government? Perhaps I’d invest in the Euro whilst the dollar remains weak. or in some renewable energy projects the Europeans are developing because the US has nothing to offer in that market. And maybe I’d treat myself to a couple of super-luxury cars like the British made German engineered Rolls Royce and/or an Italian Lamborghini, and then take a trip around the world, away from the US.
And maybe I’d also give a couple of million to a lobbyist to ensure that the US government preserve the political and financial systems that allow me to opine that the US is still the land of opportunity for anyone willing to work hard and to take some risks.
October 14th, 2008 at 1:51 pmYou know what is INAPPROPRIATE? Giving MILLIONAIRES more MILLIONS because they were so good at screwing the rest of us.
You know what is OPPRESSIVE? Being a working citizen in the current economy.
October 14th, 2008 at 1:52 pmlarkohio: Disgusting! These people have allowed greed to rule them. I’ve got news for you guys, you can’t take it with you, but your reputation will remain. Greed will be your legacy.
When you’ve go the ‘dosh’ to buy anything and everyone you want you also buy the soundproofing that prevents moral outrage from ever reaching your ears.
As Cheney likes to say…”So?”
October 14th, 2008 at 1:55 pmSounds like a preference to me. In bankruptcy, that should be given back.
October 14th, 2008 at 1:55 pmarriving late, again, but have to ask:
so is this a done deal? no way…
October 14th, 2008 at 1:58 pmOh don’t fret. It’s gonna trickle down….
October 14th, 2008 at 2:00 pmTHis isn’t petty theft. Jail time?
October 14th, 2008 at 2:01 pmCayman’s or the latest conspiracy theory, transferred to Israel.
Lehman would have to cooperate to reveal where some of their money scampered before the filing. They clearly don’t want to…
I had a wee bit of fun with the various theories.
October 14th, 2008 at 2:03 pmAnd who is going to do the accounting & bookkeeping for this massive rescue plans in the hundreds of billions of dollars of taxpayers money?.
Another bank.!!
The government assigned Melon Bank of NY to take care of this task
Very nice…!!
October 14th, 2008 at 2:17 pmI’ve said all along: Until and unless the bloody, broken remains of bankers, brokers and executives start piling up under the windows of the Wall Street ‘houses’, you may safely proceed on the presumption that it’s all a fuuking SCAM…
October 14th, 2008 at 2:18 pmThis practice of rewarding failed stewardship is disgusting enough but who wants to bet that not a dime was paid in taxes by these criminals? Who also would like to bet that all of this money is securely gaining interest in Phil Gramms UBS offshore tax haven for corporate robber barrons?
October 14th, 2008 at 2:19 pmall of this money is securely gaining interest in Phil Gramms UBS offshore tax haven for corporate robber barrons?
October 14th, 2008 at 2:19 pm
did you know that UBS was one of the top 10 corporate donors to
Barak Obama?
S’true (google it)…
October 14th, 2008 at 2:22 pmThe shareholder lawsuit will make for some good Court TV drama. How long has it been since you’ve seen a CEO cry on national television?
October 14th, 2008 at 2:24 pmHi Lehman Brothers, I want you to meet Enron. The two of you should get along so well.
October 14th, 2008 at 2:36 pmOn the face of it, it stinks. How can there not be a bunch of regulators and lawyers looking at this and see it as an attempt to “game” the bankruptcy proceedings ? Especially since bankruptcy has very specific guidelines that group A is first in line, group B is second in line, etc. etc.
October 14th, 2008 at 2:46 pmIsn’t this old news, or is it AIG that I am thinking about? There is simply no way that two investment firms would reward top executives when the firm was on the verge of bankruptcy! /sarc
October 14th, 2008 at 3:20 pmThese top executives need to be remunerated for the job they did.
Where’d I put those feathers? Ma! Get me a pail o’ tar!/
October 14th, 2008 at 3:31 pmThe original GOP was descended from the Whig party. The current gang can trace its roots to the Know-Nothings.
October 14th, 2008 at 4:12 pmInteresting news tidbit about Lehman taking care of Lehman. My retired parents are looking at $25k – $30k loss in Lehman bonds. Now it’s getting personal..
October 14th, 2008 at 4:18 pmwhy is it, that the US news papers/media does not report this stuff???
This is any out rage!
Rep. H. Waxman should learn about this…email it to his office or call.
October 14th, 2008 at 4:23 pmHey! That’s Crapitalism. Love it or lump it, commie…!
====
October 14th, 2008 at 9:12 pmHeadline should read: Top 5 Executives at Lehman Brothers Steal 100 Million Dollars Before Skipping Town.
October 14th, 2008 at 9:52 pmBedava Porno izle,
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March 31st, 2009 at 10:16 amThat is so cool! Though we are experiencing the so called “Global Crisis” still some people are willing to lend their service nationwide that allows others to stretch their food budgets a lot farther, and increase the quality of the food they serve to their families. I wish everyone are somewhat the same with the amity of this group. By the way, have you heard Ritz Camera? It is a pretty big chain of camera stores, with locations in over 40 states, so Ritz Camera does a lot of business. Well, they’ve filed for bankruptcy. Ritz Camera has been slumping ever since the retail industry has been slumping since the recession began, and now they are entering into liquidation. However, it doesn’t mean you won’t need payday loans to get a good camera, as with most liquidation sales, it’s a discount from a huge markup from what they pay for it in the first place. It’s a shame, no payday loans were going to save Ritz Camera.
April 8th, 2009 at 4:30 am