Former Lehman MD in England “giggles a little bit” at Repo 105 Revelations
There are probably a few senior Lehmanites that feel more like crying but not all…
The controversey that erupted at the end of last week with the release of the bankruptcy examiner’s 2,209 page report hasn’t put the willies up everyone.
For starters, Dick Fuld doesn’t necessarily see the report as a big downer on his rep. Quite the opposite in fact:
NYP: Fuld privately believes that the report by examiner Anton Valukas provides proof that he did nothing illegal as he steered Lehman through a financial mess that ultimately led the firm to file the largest bankruptcy in US history, according to sources familiar with the matter.
But it’s doubtful he is so cock-a-hoop about it that he is cracking Lehman jokes at cocktail parties yet. Or that he can even smile when someone mentions the L word. Some former colleagues are taking a more ballsy approach and shrugging the whole drama off.
Two former senior Lehman told New York weekly, The Observer, that the examiner’s report, especially the bit about $50 billion quietly being scooted off the firm’s balance sheet for each of the first two quarters of 2008, was simply not a big deal.
The Observer: “If Valukas went into Goldman Sachs, what do you think the report would look like?” the first asked, referring to the court-appointed examiner, Chicago attorney Anton Valukas. “This would be a fairy tale compared to that.”
“It’s just not that big of an event. But that’s not what people want it to be, so they’ll make it not that way if they can,” said the other. “They just want to be mad and don’t know what they’re talking about and want to be outraged.”
Whilst another who happened to have worked for Lehman over here in the UK was even more nonchalant:
“When I read this, I giggle a little bit. Because $50 billion is a shitload of money, but in the grand scheme of things,” said a third source, a former managing director in England—where the accounting gimmick, named Repo 105, was given a legal endorsement that it couldn’t get here, “$50 billion is a drop in the ocean.”
Basically, it’s only a big deal to Lehman creditors, politicians, the media, the public and anyone else that just doesn’t have a clue. Geddit.
