October 6, 2008

While Lehman Pled for Federal Rescue,

. . . its execs were simultaneously securing their golden parachutes.

Lehman's CEO Richard Fuld, who testified before Congress today, has already taken home close to $480 million since 2000. Said Fuld, "I feel horrible about what's happened" -- but he didn't offer to return any of the money.

Another great post from HuffPo; thanks to Kadie for the pic!

UPDATE: Per Bloomberg, Lehman's "'key' money managers will get retention bonuses valued at $400 million when their investment-management business is bought by Bain Capital LLC and Hellman & Friedman LLC.

"Bain and Hellman on Sept. 29 agreed to buy most of the asset-management unit from bankrupt Lehman in a deal that values business at $2.15 billion, about half the buyout firms' initial bids. The purchasers will deduct the employee awards from the amount they pay the investment bank for the assets, Lehman's lawyers said today in a court filing.

"Under the proposed arrangement, which a U.S. bankruptcy judge must approve, Lehman employees and portfolio managers will get 16.8 percent of the equity in the purchased assets. The awards are valued using the 'gross purchase price' of $2.15 billion, which includes assumption of liabilities, according to the filing."

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