Edelberg, Wendy

Hynes, Patricia M.

Yale University

Yale University EliScholar – A Digital Platform for Scholarly Publishing at Yale YPFS Documents (Series 1) Browse by Media Type 10-1-2010 Dick Fuld Follow Up From Wendy Edelberg Wendy Edelberg Patricia M. Hynes Follow this and additional works at: https://elischolar.library.yale.edu/ypfs-documents Recommended Citation Edelberg, Wendy and Hynes, Patricia M., "Dick Fuld Follow Up From Wendy Edelberg" (2010). YPFS Documents (Series 1). 6636. https://elischolar.library.yale.edu/ypfs-documents/6636 This Document is brought to you for free and open access by the Browse by Media Type at EliScholar – A Digital Platform for Scholarly Publishing at Yale. It has been accepted for inclusion in YPFS Documents (Series 1) by an authorized administrator of EliScholar – A Digital Platform for Scholarly Publishing at Yale. For more information, please contact elischolar@yale.edu. Phil Angelides Cllni rman Hon. Bill Thomas Vice Chairmall Brooksley Born Comlllissioner Byron S. Georgiou Commissioner Senator Bob Graham COlllmissioner Keith Hennessey Com III issioner Douglas Holtz-Eakin Commissioner Heather H . Murren, CFA Commissioner John W. Thompson Commissioner Peter J. Wallison Commissioner Wendy Edelberg Executive Director October I, 20 I 0 Via Email & Mail Mr. Richard "Dick" Fuld c/o Ms. Patricia Hynes Allen & Overy LLP 1221 Ave of the Americas New York, NY 10020 Patricia.Hynes@NewY ork.AllenOvery .com Re: Financial Crisis Inquiry Commission Hearing on September I, 20 I 0 Dear Mr. Fuld: Thank you for testifying on September I, 20 lOin front of the Financial Crisis Inquiry Commission and agreeing to provide additional assistance. Toward that end, please provide a written response to the following additional question and any additional information by October 15, 20 I 0.1 During the hearing, you provided a brief response to the question regarding the conditions under which you believed a company should be rescued or should be allowed to fail. Please provide a more detailed response to this question. The FCIC appreciates your cooperation in providing the information requested. Please do not hesitate to contact Sarah Knaus at (202) 292-1394 or sknaus@fcic.gov if you have any questions or concerns. Sincerely, Wendy Edelberg Executive Director, Financial Crisis Inquiry Commission cc: Phil Angelides, Chairman, Financial Crisis Inquiry Commission Bill Thomas, Vice Chairman, Financial Crisis Inquiry Commission I The answers you provide to the questions in this IcHer are a continuation of your testimony and under the same oath you took before testirying on September I. 2010. Further. please be advised that according to section 100 I of Title 18 of the United States Code. "Whoever, in any matter within the jurisdiction of any department or agency often United States knowingly and willfully falsifies. conceals or covers up by any trick, scheme, or device a material fact, or makes any false, fictitious or fraudulent statements or representations, or makes or uses any false writing or document knowing the same to contain any false. fictitious or fraudulent statement or entry. shall be fined undC!r this title or imprisonC!d not more than live years, or both." 1717 Pennsylvania Avenue, NW, Suite 800 • Washington, DC 20006-4614 202.292.2799 • 202.632.1604 Fax .~ * October 14,2010 BY ELECTRONIC MAIL AND OVERNIGHT DELIVERY Wendy Edelberg Executive Director, Financial Crisis Inquiry Commission 1717 Pennsylvania Avenue, NW Suite 800 Washington, D.C. 20006-4614 ALLEN & OVERY Allen & Overy LLP 1221 Avenue of the Americas New York NY 10020 Tel Fax Direct Line 2126106300 2126106399 2126106323 patricia.hynes@newyork.allenovery.com Re: Financial Crisis Inquiry Commission Hearing on September 1,2010 Dear Ms. Edelberg: On behalf of Richard S. Fuld, Jr., we submit the following response to the additional question set forth in your October 1,2010 letter: You have asked me to provide a more detailed response to the question about the conditions under which a company should be rescued or should be allowed to fail. This is a difficult question to answer in the abstract. As I have previously stated in my written and oral remarks to the Commission, Lehman Brothers was not a bankrupt company. The firm did not suffer from a capital shortfall, but from a sudden loss ofliquidity. In the specific context relevant here, Federal Reserve Chairman Bemanke told this Commission: "I believed deeply that if Lelunan was allowed to fail or did fail that the consequences for the U.S. financial system and the U.S. economy would be catastrophic." Indeed, according to former SEC Chairman Cox, in his testimony before this Commission, it took $16 trillion to restore market confidence to the system after the Lehman bankruptcy. Given these facts, any government assistance to Lehman, in the form of a guarantee of trading positions to effect the Barclays transaction or a liquidity bridge to calm irrational market fears surrounding its capital position, was warranted to forestall or even to mitigate the systemic consequences that followed the Lehman bankruptcy. Allen & Overy LLP Is a limited liability partnership registered In England and Wales with registered number OC306763. It Is regulated by the Solicitors Regulation Authority of England and Wales. Allen & Overy LLP Is a multi-jurisdictional law firm with lawyers admitted to practice In a variety of jurisdictions. A list of the members of Allen & Overy LLP and their professional qualifications Is open to Inspection at Its registered office, One Bishops Square, London, E1 6AD and at the above address. The term partner is used to refer to a member of Allen & Overy LLP or an employee or consultant with equivalent standing and qualifications. Allen & Overy LLP or an affiliated undertaking has an office In each of: Abu Dhabi, Amsterdam, Antwerp, Athens, Bangkok, Beijing, Bratislava, Brussels, Bucharest (associated office), Budapest, Doha, Dubal, Dusseldorf, Frankfurt, Hamburg, Hong Kong, London, Luxembourg, Madrid, Milan, Moscow, Munich, New York, Paris, Prague, Riyadh (associated office), Rome, Silo Paulo, Shanghai, Singapore: Sydney, Tokyo and Warsaw. We thank the Commission for the opportunity to address this matter. cc: Mr. Richard S. Fuld, Jr. 2 

Dick Fuld Follow Up From Wendy Edelberg

https://elischolar.library.yale.edu/cgi/viewcontent.cgi?article=7684&context=ypfs-documents

Dick Fuld Follow Up From Wendy Edelberg

Abstract

Similar works

Full text

Available Versions

Yale University