Dick Fuld’s fundamental strategic mistake

By Justin Fox | October 20, 2009 | +

Sorry, been working on my column this morning. Now I can’t figure out how to embed this week-old Bird & Fortune video from FT.com. It’s long, but highly entertaining, and while it’s already been making the rounds for a while I want to make sure nobody misses it. A sample:

There is a rule that property values never go on rising forever. That’s an absolute cast-iron rule. They never have, they never will, and only a complete fool would think otherwise.

Except that just this once we thought they would.

and

Dick [Fuld] did make a very fundamental strategic mistake. In that never, in his entire career, did he ever work for Goldman Sachs.

Related Topics: Wall Street & Markets

@TIMEBusiness

Latest on Business

Airlines May 22, 2012

Senate Approves Hike in Airline Security Fees

(WASHINGTON) — A Democratic-controlled Senate panel Tuesday approved a $2.50 increase in airline security fees that would double the per-passenger fee for those taking nonstop flights.
From our Partners
Why Greece Isn't Leaving the Eurozone YetSlate

Weird-Mart: Tales of the Bizarre from the Walmart AislesDaily Finance
Tech Bubble Death Watch: The Facebook IPOHuff Post Business
Wall Street & Markets May 22, 2012

Stocks Rally Further in Run-up to EU Summit

MOSCOW — Global stocks enjoyed one of their best days in weeks on Tuesday ahead of a summit of European leaders that’s expected to be dominated by calls to boost economic growth.

Europe remains the focus of attention across all financial markets in the run-up to the June 17 Greek election that could go a long way to determining the country’s membership of the euro as well as the future of the single currency zone.

pneogy

Priceless! Thank you.
http://skipworden.wordpress.com euandus

I think the failure of Lehman’s corporate governance was evinced in back in the summer of 2008 when the top execs viewed the market rather than the stockholders as “demanding that we hold ourselves accountable,” according to Skip McGee. I’ve just finished a blog post arging that while self-accountability is a laudable goal, we can’t (or shouldn’t) rely on it. In fact, “holding ourselves accountable” suggests the absence of accountability through corporate governance.