| |
| |
 |
| |
|
| |
|
| |
|
WASHINGTON: The former head of collapsed US banking giant Lehman Brothers lashed out at the US government Wednesday, claiming it could have prevented the firm's collapse but failed to act.
Dick Fuld - who became a poster child for the ills of the banking sector - demanded to know why the government had rushed to help competitors but not Lehman, in prepared testimony for a committee investigating the financial crisis.
"Lehman was forced into bankruptcy not because it neglected to act responsibly or seek solutions to the crisis, but because of a decision, based on flawed information, not to provide Lehman with the support given to each of its competitors."
Fuld detailed measures he said could have helped save the bank and complained that "each measure was later implemented in some form for other investment banks during the days and weeks following Lehman?s bankruptcy filing."
"Had Lehman been granted that same access as its competitors... Lehman would have had time for at least an orderly wind down or for an acquisition which would have alleviated the crisis that ensued."
The firm had 639 billion dollars in assets on September 15, 2008, when it filed for bankruptcy. It was the largest collapse in US history and sent the global economy into a tailspin.
While admitting to "poorly timed business decisions and investments," Fuld also blamed the collapse of the bank on market rumours that were allowed to run amok.
"Lehman's demise was caused by uncontrollable market forces and the incorrect perception and accompanying rumours that Lehman did not have sufficient capital to support its investments," he insisted.
- AFP/de
|
