Lehman’s Fuld on the Hot Seat

Representative Henry Waxman (D-Calif.) and other members of Congress have been raking Lehman Brothers CEO Richard S. Fuld Jr. over the coals for the generous bonuses that were paid out by his firm as the investment bank was teetering on the brink of insolvency.

Lehman filed for bankruptcy on Sept. 15, just a few days after the board approved $20 million in “special payments” to three executives, according to the Associated Press.

Evidently, some managers at the firm’s Neuberger Berman money management unit had the temerity to suggest that bonuses be dispensed with, given the firm’s precarious economic situation. The AP quotes Fuld as saying in one document, “Don’t worry,” to the idea that execs go without bonuses.

I don’t have time to do a full treatment of Fuld’s chart right now. According to the Wiki, he was born April 26, 1946 in New York. The time of birth is unknown. Here is his chart, courtesy of Astrodienst.

You can see that Mars in Scorpio is moving to an exact opposition to Fuld’s Taurus Sun, so the heat isn’t going away. Fuld was born with Mars in Leo square his Taurus Sun so he’s used to taking flak, but he may not be prepared to become the poster child for greed on Wall Street.

Stern Saturn in Virgo is squaring his Uranus/North Node (public) conjunction in Gemini, by the way. So he’s going to be getting a lot of negative publicity from electronic media — from C Span to the Internet.

By Waxman’s calculations, Fuld has earned $400 million in executive compensation since the year 2000.

Wall Street Weather has a good post up on the grilling Fuld got in Congress.

6 comments on “Lehman’s Fuld on the Hot Seat

  1. Monica: Glad to be the first to comment, but it’s not what makes me do so. When something goes wrong in this sublunar world, those hurt, but not quite understanding why, usually look out for a “scapegoat.”

    Poor Richard Fuld, turns out to be the “perfect victim.” I looked at his chart. As you said, he will survive this one. Would even say: those provoking him too much may get the dirt they are stirring up right back in their faces!

    And then one always has those bathing in “Schadenfreude”: In this, the acting Pope of our times stands way out! How can one make such inappropriate comments when everybody, even devout Catholics, understand that the “world is traversing an accident,” one of so many past ones and certainly only one of more to come in he future! That’s the world. No Pope nor Rabbi nor Ayatollah or Mufti will ever change these forces at work.

    I am personally upset that the “Man in Rome” had the impertinence to PROFIT from this crisis, to “preach to his own interests.” After all it was his organization who almost killed Galileo, and with him astronomy/astrology (not separate in those times).

    Astrologers of this world: Unite to fight obscurantisms of all coloration!
    What’s needed now is cool head, historic perspective, and faith that all this is not the end of the world!

    Some stupid commenter during the day touted that the market lost the most “in points ever in one day.” Have to be realistic. Think in % loss, after all the Dow is/was at over 10.000 points. So…

  2. GP — Fuld may be feeling like a victim over the next few days as the transiting Sun hits his Chiron in Libra. And, I don’t think the world is ending, but an era of unrestrained pillaging of shareholder assets has thankfully come to a close.

    Former SEC Chairman Richard Donaldson, a shrewd Wall Street veteran, tried to bring greater shareholder oversight to publicly traded companies such as Lehman but resigned after he didn’t receive the support of the Bush Administration.

    I’m always in favor of having wily Wall Street operators running the SEC. Donaldson was one of the founders of Donaldson, Lufkin & Jenrette, a successful brokerage firm until it acquired by Credit Suisse in 2000. As the first chairman of the SEC in 1934, stock speculator Joseph Kennedy Sr. was able to put an end to many of the tactics such as “blind pools” that earned him millions in the Twenties. Interestingly, the Wiki says Kennedy made a fortune during the Depression by buying real estate at rock-bottom prices.

    Of course, the reformers are always cleaning up yesterday’s problem and cannot anticipate the next shell game that will fleece shareholders of their money. — Monica

  3. Monica – you are so right! “Crime tends to be more innovative than the police.” The same applies to artists, financial or other. Just think of Andy Warhol, Van Gogh, Salvador Dali, Berthold Brecht, Gershwin, Schoenberg, etc. — GP

  4. Monica – Strange day today! Shakespeare said (don’t remember exactly where, sorry): “The Time is out of Joint.” Feel strongly that we are about there.

    Gold reacted nicely. The Fed is now helping out the Treasury, buying short-term paper…(Germany went through that during the Weimar Republic in the late 20s, which helped the rise of Hitler and his cronies).

    Fond of astrology, I try to understand what’s going on in the skies. I’ve repeatedly looked at various present charts. The only conclusion I come to is that even though we haven’t seen the full force of Pluto in Capricorn, just got a taste earlier this year, that the culprit must be him.

    A competent chartist whom I listen to has practically “given up.” He told me just now on the phone that it may be good to revive Kondratieff.

    Mercury being retrograde until mid-October is not exactly helping stargazers like you and me, but I suspect that more heavy bodies are at work.

    Uranus and Neptune will shortly go direct, hopefully bringing clarification of what Mercury the Messenger is trying to tell us. Exceptional circumstances: Uranus and Neptune are in mutual reception. Once they go direct, something ought to become clear.

    We are living fascinating times indeed, at least astrologically speaking! Good to keep faith!

  5. Monica – Yes, I saw your post on Kondratiev and found it instructive. Twenty-nine years ago (Saturn) he was quite en vogue, even at very respectable N. Y. institutions (oil crisis, galloping inflation, remember?).

    That’s where I discovered him. Still have difficulty making much out of his theories, practically speaking. There is something there, but have not tested it sufficiently. I then concluded that it had to do with sun spot and Jupiter cycles.

    Just read your post on Alan Greenspan. Very interesting. Have some comments. Will try to send them shortly. You may not exactly like them, but that makes for a lively discussion, doesn’t it? — GP

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