Lehman’s Fuld in the dock
Congress starts the post-bailout blame game
The $700 billion Wall Street bailout is law, said Brian Wingfield in Forbes online, so “it’s time for Washington to return to a more familiar game: finger pointing.” It got started at a congressional oversight hearing appearance by Richard Fuld, the CEO of failed investment bank Lehman Brothers. The political parties blamed each other. Fuld said Lehman didn't mislead investors—he blamed regulators and short sellers.
“If Fuld didn’t act when he could have, it’s a bit much for him to blame the regulator for inaction,” said Richard Beales in Breakingviews.com. He and his team had six months to “buttress their firm” after the collapse of Bear Stearns. They didn’t, so “Fuld’s cake of excuses” is hard to swallow.
It’s a shame that Fuld’s grilling, however deserved, was mostly political “theater,” said Joe Nocera in The New York Times. It would have been “genuinely useful for the country to understand” Lehman’s collapse. Given the ensuing panic, the federal government’s failure to save Lehman could be its “single worst mistake” in this crisis.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
-
Gavin Newsom mulls California redistricting to counter Texas gerrymandering
TALKING POINTS A controversial plan has become a major flashpoint among Democrats struggling for traction in the Trump era
-
6 perfect gifts for travel lovers
The Week Recommends The best trip is the one that lives on and on
-
How can you get the maximum Social Security retirement benefit?
the explainer These steps can help boost the Social Security amount you receive