Lehman: Hubris, followed by Nemesis?
September 15, 2008 2 Comments
Financial Times has a very good read on the state of Lehman Brothers, which grew to be among the top 4 investment banks in the world. It says how Richard Fuld’s never-say-die attitude has saved it in the past and put it on a growth trajectory, but this time, perhaps, he held back far too long [link shared by Rave]:
Lehman’s collapse is worrying for financial markets and for Wall Street as a whole. It is also a tragedy for its 24,000 employees, who were drilled into unwavering loyalty and cohesion by Mr Fuld. Many held a lot of their wealth in Lehman shares, which have lost most of their value.
It is also a tragedy for Mr Fuld, in the classical Greek sense. He had devoted so much of his life and his personality into moulding the bank he could not accept its decline. If he had sold out earlier, Lehman might have survived but he was too proud. It was hubris, followed by nemesis.
I hope there is still a white knight somewhere who can save Lehman, because I wonder if its collapse will bring down the house of cards.