The reason why Lehman wants to give out an unusual half-year bonus in the form of stocks suddenly makes sense, in an obscure plan to take Lehman private. That is something the SEC and FED should have a close eye on. In order to make it a lucrative deal, Fuld's interest is to dump the stocks, so that he can make a cheap offer to take over the entire company. He is trying to turn a bad situation into a windfall for himself, since he is the biggest stockowner, together with the other employees. That is a dangerous and inappropriate approach for the regular stockowners, since we have a conflict of interest.
Excerpt from CNBC
Lehman Brothers Chief Executive Richard Fuld is considering ways to take the Wall Street investment bank private, the New York Post reported on Tuesday.
http://www.cnbc.com/id/25684605
http://www.cnbc.com/id/25692973
Tuesday, July 15, 2008
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