The strongest steel is forged in the hottest fires.

Experience is the best teacher.

aimlesfez hush.. cockhead

If you let the bigs fail at that time, the entire system might collapse and who knows what might happen next. Another 1929 style depression won’t go as well as it was back then. It is true, too big to fail is very problematic. Unfortunately I don’t see us complaining when we reap the benefits from monopoly. The banks are able to issue loans with little control, allowing anyone to get a house or finance their investment. Many startup start out with a bank loan as well. This attitude is enable with too big to fail. It’s scandalous when the banks give ridiculous compensation once the crisis had passed, but that’s the rule of Wall Street. They had a deal before the CEO took the hot seat, thus his compensation. The board wants to show prospective CEO that their firms take care of you even during crisis. It’s a complicated world.

@@lc9245 well said, this system is far from ideal, but it has become so intertwined and unbelievably complex, sometimes you must do what seems wrong to save even those who think it is a bad idea. Noone is advocating for banks to always be bailed out, but we live in a time where, hey if they aren't, let's say hello to 20% unemployment, global financial meltdown, soup lines and all the amazing things we all know and love

He worked for Sanford Bernstein since 2001. Really wasn’t a part of what happened there.

R.I.P. AIG "too big to fail"

true truth

He left Lehman in 1998 the company fell apart in 2008

NC Styles bruh 😂

Yes💀

He is scarier though. He's a banker.

The problem is not have Glass Steagall or Dodd Frank in place essentially means that these banks are still doing what they were doing and will continue to do so. The market right now is HUGELY OVERVALUED.

Respectfully disagree. 1.Central Banks (including the Fed) have been doing a pre-emptive bailout in the form of rounds of Quantitative Easing, so that TBTF banks have enough reserves for inter-bank payments, comply with Basel III, and keep lending, and buying securities, plus paying massive IOER and ON-RRP subsidy (43 B in 2018) under the disguise of "sound monetary policy" in replacement of OMOs. 2.The dollar swap facility, which was an emergency facility Bernanke resuscitated in 2008-2009, is now permanent, so that if a crisis strike elsewhere e.g. Australia there is no shortage of dollars for them to borrow at will. SOCIALISM FOR THE RICH IS NECESSARY TO AVOID THE COLLAPSE OF THE WORLD ECONOMY SOCIALISM FOR THE POOR I.E MEDICARE FOR ALL, SOCIAL SECURITY EXPANSION, FREE COLLEGE IS JUST "ENTITLEMENTS"

Respectfully disagree, banks are far better capitalised and regulated now. My be is the next crisis will be sovereign debt, say Italy

But now the high risked Repo is in Feds balance sheet. What could have gone wrong when the police is policing themselves

He was CFO in the 90s.... Do some research!

Nail right on the head.

capitalism is built on leverage

Thank you!!👏

He worked for Sanford Bernstein since 2001, retired in 2014. Just a heads up...

Goldman sachs was selling the Default swaps and MBS and was also short telling it as junk to others.

but you're not saving them only but also yourself for example if the government would've stepped in to save Lehman do you still think that the crisis would've been this bigger?

In any other business, the minimum would be fire the senior management, replace the executive board, end all senior bonus payouts, end any dividend and sell liquid assets, close the worst performing dept

Well, he was evasive but he did bring up key points in the mechanics that led to the failure. He is right though, the Feds should’ve have covered the exposure and left the equity holders out to dry. That would’ve been the effective way for the fed to manage risk. But then again, it’s easy to say all this in hindsight. Still, his hindsight knowledge is valuable for next gen investment bankers in their pursuit of legal crimes

@thomas samson amen

He was Lehman’s CFO from 1996-1998 you fool. It was a completely different firm back then.

Yes!! Why listen to a crook??? Why would you have this guy on bragging when so many lives were destroyed by their actions.

TARP came later. Dick "Prick" Fuld was an arrogant a-hole and neither Hank Paulson nor anyone in Wall St wanted to bail him out. That simple. They knew the AIG ramifications (CDS exposure) that bursted on Tuesday 18th, but they wanted to humiliate and get rid of the cocky.

@@reneborroto9901 so it's okay that it was a popularity contest & not in the taxpayer's best interest.

@@mecthegreat92 What makes you believe that Wall St cares about the US tax payers? US government debt (that tax payers paid-pay-will pay) supports not just Wall St, but the entire monetary policy of the Fed, not just the traditional OMOs, but nowadays QE-ternally and the current intervention in the repo market. Let me know if you want details. On the other hand, did it hurt Goldman Sachs, Morgan Stanley, and the investment bank side of JP Morgan, Bank of America- Merryl Lynch, and Citi to get rid of Bear Stearns and Lehman Brothers? Who benefits with industry consolidation that is entirely caused by the invisible hand (and the unwillingness of Paulson's visible hand?)

Not to mention the dodgy accounting meant they had no idea what they were buying.

How the fuck could a CFO not have been aware of the unscrupulous business practices that occurred at Lehman Brothers?

I think he had left Lehman many many years before 2008.

@@hwb929299 The Great Recession created the conditions that allowed Trump to con the American people. Those who caused the Financial Crisis or were in any way involved ought to be charged w/ Conspiracy against the United States (*18 USC section 371).

He was CFO from 1996-1998. Learn the facts before spouting nonsense.

@@morostop Sounds like you may have worked in "finance" or "on wall street".

He was Lehman’s CFO from 1996-1998. Lehman had no where near the kind of leverage back then, they hadn’t even acquired their subprime mortgage business (BNC mortgage) at that point. It’s you who knows “nothing about this.”

One can only imagine how much kickback Paulson got as he hijacked billions of US taxpayers dollars, not even counting TARP

He means the analysts and the rest of the back office 1 yrs as well.

The Treasury prints money, not the banks

He is now a teacher that puzzles me😂