The Probe of Lehman Brothers Is “On Life Support”

FOX Business Network’s Charlie Gasparino reports that “sources close to the Securities and Exchange Commission [SEC] say the probe of Lehman (LEHMQ) is not over” but it is “on life support.” Gasparino also reported on former Lehman Brothers CEO Dick Fuld, saying that, “Dick Fuld feels for all intensive purposes that he’s off the hook,” and “even if charges aren’t brought against him…he will always be Dick Fuld, the guy that was running the train when it crashed.” Excerpts from the report are below, courtesy of Fox Business Network.

On the government’s probe into the fall of Lehman Brothers:
“Sources close to the Securities and Exchange Commission (SEC) say the probe of Lehman is not over; it is, however, on life support. That means they’re having a difficult time coming with charges, with something against maybe former CEO Dick Fuld, former CFO Erin Callan, or Ian Lowitt, who replaced Callan as CFO when it imploded in the summer of 2008. But, the SEC is still investigating this case; they haven’t given up. Charges come often 2 or 3 years after the fact. They may, in the end, opt to do a 21A report, but what we’re hearing from inside the commission is they are still looking because there is incredible public pressure for them to bring something in this case. We’ve been talking to analysts that covered the firm who tell us they basically feel that they were misled.”

On what Former Lehman Brothers CEO Dick Fuld has been doing lately:
“Dick Fuld feels for all intensive purposes that he’s off the hook. He’s trying to start a financial advisory firm. Sources tell FOX Business Network he has a few clients. It’s difficult because even if charges aren’t brought against him, which, though it’s still going on, that looks like the likelihood, he will always be Dick Fuld, the guy that was running the train when it crashed.”

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