Intriguing to read about former Lehman Brothers chief executive officer Dick Fuld's pending testimony to a congressional committee where he has adopted the Sgt Shcultz defence.
The Wall Street Journal reports Fuld is using the "I know nothing" defence about the Repo 105 transactions, the accounting trick that allowed Lehman Brothers to hide billions of dollars of toxic assets and shove them off its books.
In his testimony, Fuld says: "Let me start by saying that I have absolutely no recollection whatsoever of hearing anything about Repo 105 transactions while I was CEO of Lehman. Nor do I have any recollection of seeing documents that related to Repo 105 transactions. The first time I recall ever hearing the term "Repo 105" was a year after the bankruptcy filing."
Now how a CEO can say he has no idea how his company's balance sheet is put together defies imagination.
Fuld also claims Lehman was forced out of business because of the financial crisis. If nothing else, Fuld's testimony shows the man is completed deluded.
Which raises the questions about the culture of Wall Street. It seems to be the only place where people like that would get jobs.
It’s not just Dick Fuld, check out the ex Audit Committee chair Cruikshank’s testimony at http://www.invesguard.com/?p=120
It’s as incongruous as Mr.Fulds.