Lehman Brothers Holdings Inc.'s ``key'' money managers will get retention bonuses valued at $400 mil

This is absolute bullshit


http://www.bloomberg.com/apps/news?pid=20601087&sid=atccPdvPEdKk&refer=home


Lehman Money Managers May Get $400 Million at Bain, Hellman

By Linda Sandler and Jason Kelly

Oct. 6 (Bloomberg) -- Lehman Brothers Holdings Inc.'s ``key'' money managers will get retention bonuses valued at $400 million when their investment-management business is bought by Bain Capital LLC and Hellman & Friedman LLC.

Bain and Hellman on Sept. 29 agreed to buy most of the asset-management unit from bankrupt Lehman in a deal that values business at $2.15 billion, about half the buyout firms' initial bids. The purchasers will deduct the employee awards from the amount they pay the investment bank for the assets, Lehman's lawyers said today in a court filing.

Under the proposed arrangement, which a U.S. bankruptcy judge must approve, Lehman employees and portfolio managers will get 16.8 percent of the equity in the purchased assets. The awards are valued using the ``gross purchase price'' of $2.15 billion, which includes assumption of liabilities, according to the filing.

Lehman was the fourth-largest investment bank before it filed for bankruptcy Sept. 15. Lehman Chief Executive Officer Richard Fuld bought Neuberger Berman in 2003 for $3.2 billion to expand the firm's wealth-management business and later consolidated its asset-management operations into a single division. He had hoped to hold onto a stake in the unit as part of his failed plan to keep the 158-year-old firm afloat.

Fuld today became a surrogate for Wall Street's calamities in the first of a series of congressional hearings into the credit crisis and mortgage-market meltdown. Lawmakers peppered him for two hours with queries about excessive Wall Street pay and his failure to acknowledge the firm's financial woes until it was too late.

oh that's right they're really good at stealing money and getting away with it

:puke:

And we the people foot the bill.

And they see nothing wrong with this.

As far as I know, neither Bain Capital nor Hellman & co. are the beneficiaries of any taxpayer money. Can you explain?

you know, the one that bought companies and made their jobs go "poof!"

:grr:

though the OP was apparently serious.

http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=389&topic_id=4161334

:hi: Forkboy!

I've missed you :hi:

I was wondering where she went. :D

:hi: seemslikeadream :hug:

Yes, the Fuld pic is a success; folks like it, and much to my delight at least two have criticized it (and me :D).

I'm sure Richard will be just fine

:D

:D

The scary thing is you made him look more sane. ;)