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The Fuld Guy: Lehman CEO Finally Sued Over Repo 105 Scam
It always seemed to us that the whole Lehman Repo 105 fiasco seemed to be too much of a slam dunk for nobody to get sued over it. Yet here we were, almost a year after the Valukas report, and nobody was even pretend to be fighting off justice, or even a bunch of brain impaired porn addicts. Not so any longer. Bloomberg reports that per an unsealed filing in the Lehman bankruptcy docket, the Lehman 401(k) retirement plan, which had just under $230 million invested in Lehman stock, has sued Dick Fuld "and other former executives of
the defunct firm for failing to disclose Repo 105, a financing
method allegedly used to conceal billions of dollars of debt." And all this is occurring as the SEC is scrambling to find new and improved ways to pay off its multi-million midget porn bill, up to an including firing every staffer with an IQ over 50...All 4 of them.
From Bloomberg:
The amended lawsuit, based partly on a 2,200-page report by Lehman bankruptcy examiner Anton Valukas, was filed under seal in September and ordered unsealed by a judge on Nov. 30, according to a filing in U.S. District Court in Manhattan. The original suit was filed in 2008.
The 401(k) plan had $228.7 million invested in the Lehman Brothers Stock Fund, which had 10.6 percent of its assets in Lehman shares trading at $65.44 each on Dec. 31, 2007, according to the lawsuit. The company’s benefits committee liquidated the fund nine months after Lehman went bankrupt in September 2008 and its stock was worthless, the suit said.
Fuld and other executives “knew or should have known” about Repo 105 and other risks taken by Lehman, “and therefore knew or should have known that the plan’s assets should not have been invested in company stock,” according to the complaint.
And unlike Phil Faclone, we hope that Dick has a cool couple hundred million in his checking account. He may need it soon.
The plaintiffs asked the judge to force the executives to
“make good” all losses to the 401(k), pay damages equal to the
losses, and restore profits that participants “would have made
if defendants had fulfilled their fiduciary obligations.”
Of course, if defendants had fulfilled their "fiduciary obligations", the end result would have been that the plan participants would have ended up likely owing money after their entire stock ended up being margined so that Dick Fuld could raise capital to IPO Greenlight and subsequently naked short it to death. After all, as Ben Bernanke will soon find out, sometimes a complete wipe out is the best thing that can happen to you.
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you know, i read all these articles you post babe, everybody is just suing everybody else. it is just one big lawsuit of america.
don't ya think?
i mean i am a laywoman, in my own lawsuit, mind you.
but DAMN, every one of these articles this entity is suing that entity, or corporation is suing this corporation or this citizen is suing these citizens.
welcome to LAW SUITS of AmErIcA†
suing is BIG in America
Sue or be suet.
Welcome to our new export.
Lawyers are especially sensitive to the sound of a fiduciary bubble pop.
Cathy ... Are you drinking again.
LOL
Everyone is being *forced* to sue. The great flaw in the government's strategy of ignoring wrongdoing, is that there are injured parties involved in each of these wrongdoings.
IMHO, these lawsuits are fantastic. They're the one thing that will force the government to recognize the crimes of the oligarchy.
The whole concept of Repo 105's is fraudulent, as are "off balance sheet assets". They are pure-and-simple, willful intent to deceive and mislead investors.
I'd be curious to know who is on the other side of this 105 trans - I guessing someone like WB
... until quarter end for WB.
Is it still fraud if everyone is doing it? More to the point, would the fund indeed have avoided Lehman stock if the repo 105 trick (and other scams, for that matter) had been disclosed? Probably not. While the ponzi is in accrual mode, everyone's happy to be at the party. It's only after the collapse that buyer's remorse sets in.
Fraus et dolus nemini patrocianari debent.
Communis error no facit just.
About time! Dick Fuld is more deserving than most of the baddies to be sued. I wish the suers well. Fuld certainly knew about the Repo 105s, the deceptions and the material relevancy. And he never gave a whit about anyone but hi'mself. I know a number of people who worked for him, closely enough, and even back in the 90s he was an ass.
Mr. Dick Fuld,
Now that you have been sued for the Repo 105 transactions, we at the SEC are backed into a corner. We do not wish to fully invesitgate these tranasactions, therefore could you provide to us what you feel would be a reasonable fine for a SEC settlement?
Please keep in mind that we will have to go public with this amount to make it appear as if we are looking out for the little guy.
Thank you,
Your Bitch Mary
p.s. Next time, can you try to keep any conflicts regarding the old Lehman private. Our investigators really don't like leaving their offices.
"And all this is occurring as the SEC is scrambling to find new and improved ways to pay off its multi-million midget porn bill, up to an including firing every staffer with an IQ over 50...All 4 of them." That is harsh
You Honor, my client, Mr. Fuld, would like to invoke the "but everyone else was doing it" clause.
Hey! What've you got against porn addicts? We resent the use of that label in pejorative form.
To find out more about the Imminent Collapse of the Global Economy, watch this video "Get the NEW SCREW BRICK for 5 Easy Payments of $19.99 !! (30-day free trial)" at (http://www.youtube.com/watch?v=MzSSyGE95kw).
by Anonymous
So ridiculously funny, you can’t even make this sh$t up!! Awesome video!
Fuld will use the "Chewbacca" defense. Discussed on ZH in the past - very effective.
http://www.southparkstudios.com/clips/103454/the-chewbacca-defense
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Did Bank of Amerika just get off the hook for 137mil?
I hope I read that wrong. "...immune from prosecution."
being a bankster means never having to say you're sorry or taking responsibility or ownership for fraud, failures, and fuckups...
nope, banksters are privileged people who live above the laws of gravity.
Well gee, am I go-inna throw my hat in air a-ir if they catch one of em Wall Street people and throw em in the jailhouse. Seems about as much chance of that as Fed worker getting the boot for incompet-ince...
Sheeples fault, don't ya know...
The Federal Reserve 'Bank' is practicing 'Repo 105 x infinity'...
...bitchez.