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Lehman’s Fuld to face grilling by Congressmen
06.10.08
Lehman Brothers chief Dick Fuld is due to face his critics in Congress tomorrow.
The last time he spoke publicly about his bank's failure was on 10 September, five days before the firm hit the wall.
He will give testimony to the House Committee on Oversight and Government Reform .
The Congressional committee, chaired by California Democrat Henry Waxman, is looking into “regulatory mistakes and financial excesses” that led to the bankruptcy filing of Lehman.
The company's implosion “sparked a financial crisis on Wall Street that is causing massive economic disruption”, Waxman said.
“We need to understand why Lehman failed and who should be held accountable.
“The taxpayers are being asked to pay $700 billion to bail out Wall Street. They are entitled to know who caused the meltdown and what reforms are needed.”
Lehman was both a victim and part-creator of the subprime mortgage crisis that has engulfed the global financial system.
Some Republicans question whether Fuld, who remains chief executive of Lehman's holding company, will get a fair hearing.
