Lehman's Golden Parachutes Were Being Secured While Execs Were Pleading For 
Federal Rescue

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JULIE HIRSCHFELD DAVIS | October 6, 2008 03:58 PM EST |  Compare other versions 
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Lehman Brothers Holdings Inc. Chief Executive Richard S. Fuld Jr., testifies 
before the House Oversight and Government Reform Committee on Capitol Hill in 
Washington, Monday, Oct. 6, 2008, on the collapse of Lehman Brothers. (AP 
Photo/Susan Walsh) 


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WASHINGTON — Days from becoming the largest bankruptcy in U.S. history, Lehman 
Brothers steered millions to departing executives even while pleading for a 
federal rescue, Congress was told Monday.
 
As well, executives who feared for their bonuses in the company's last months 
were told not to worry, according to documents cited at a congressional 
hearing. One executive said he was embarrassed when employees suggested that 
Lehman executives forgo bonuses, and cracked: "I'm not sure what's in the 
water."
 
The first hearing into what caused the nation's financial markets to collapse 
last month, precipitating a $700 billion bailout, opened with finger-pointing 
and glimpses into internal company documents from Lehman's chaotic last hours.
 
Rep. Henry Waxman, D-Calif., chairman of the House Oversight and Government 
Reform Committee, said the giant investment bank was "a company in which there 
was no accountability for failure." Lehman's collapse set off a panic that 
within days had President Bush and Treasury Secretary Henry Paulson asking 
Congress to pass the rescue plan for the financial sector.
 
Richard S. Fuld Jr., chief executive officer of Lehman Brothers, declared to 
the committee "I take full responsibility for the decisions that I made and for 
the actions that I took." He defended his actions as "prudent and appropriate" 
based on information he had at the time.
 
"I feel horrible about what happened," he said.
 
Waxman questioned Fuld on whether it was true he took home some $480 million in 
compensation since 2000, and asked: "Is that fair?"
 
Fuld took off his glasses, held them, and looked uncomfortable. He said his 
compensation was not quite that much.
 
 
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