und Peloton Partners was forced into a fire sale in February 2008. Cassell Bryan-Low, Carrick Mollenkamp, and Gregory Zuckerman, “Peloton Flew High, Fell Fast,”
101 people pay as much as $3,250: Hugo Lindgren, “The Confidence Man,”
101 Tomorrow’s Children Fund
101 “We start by asking why a security is likely to be misvalued in the market”: Einhorn,
101 “The Nonrecurring Room”: Jesse Eisinger, “Diary of a Short-Seller,”
102 had announced that it was stopping investors: At 2:30 a.m. on August 9, Dow Jones posted a press release from BNP Paribas: “The complete evaporation of liquidity in certain market segments of the US securitisation [
102 code named “The Credit Basket”: Lindgren, “The Confidence Man,”
102 “It is early, and we don’t give guidance on future periods”: Chris O’Meara, Lehman’s Chief Financial Officer, from the “Q3 2007 Lehman Brothers Holdings Inc. Earnings Conference Call,” September 18, 2007.
103 “This is crazy accounting”: Lindgren, “The Confidence Man,”
104 “Lehman is not that materially different from Bear Stearns”: David Einhorn, “Private Profits and Socialized Risk,” Grant’s Spring Investment Conference, April 8, 2008. 105 “I can only feel that you set me up”: Einhorn’s exchange with Callan reported by Susanne
Craig, “Finance Chief Is Demoted,”
106 shares of Allied plunged nearly 11 percent: Stephen Taub, “Speaking Candidly,”
106 the Securities and Exchange Commission started investigating him: Lindgren, “The Confidence Man,”
106 “One of the key issues I raised about Allied ”: This and all succeeding speech quotes by David Einhorn of Greenlight Capital are from his “Accounting Ingenuity” speech at the Ira W. Sohn Investment Research Conference, May 21, 2008.
CHAPTER SIX
109 “Who talked?”: Susanne Craig, “Lehman Struggles to Shore Up Confidence,”
109 “Losses Push Lehman to Weigh Raising New Capital”: Susanne Craig, “Losses Push Lehman to Weigh Raising New Capital,”
110 stock was pummeled: Ibid. Lehman’s shares fell 15 percent in the afternoon of Tuesday, June 3, after Lehman liquidity rumors surfaced.
112 “Lehman’s straight shooter”: Susanne Craig, “Lehman’s Straight Shooter,”
112 “The Most Powerful Woman on Wall Street”: Jesse Eisinger, “Diary of a Short-Seller,”
113 Lehman’s deal with Woori: Hae Won Choi, “Woori Sets Pact with Lehman to Cut Bad Debt,”
113 having judged his credentials inadequate, had tried unsuccessfully to stop it: In June 2008, instead of settling in to his new office at KDB, Min spent several days addressing complaints and protests from K DB trade union workers enraged about his appointment. Song Jung-A, “Man Behind Doubts Rise over KDB’s Push for Global Status,”
113 he sang a song called “Leopard in Mt. Kilimanjaro”: K im Yeon-hee, “K DB’s CEO: A Leopard on the Hunt for Lehman,” Reuters, September 5, 2008.
114 “Korea situation sounds promising”: Goldfarb’s e-mail, sent May 26, 2008, was made available from the House Oversight and Government Reform Committee’s investigation on the “Causes and Effects of the Lehman Brothers Bank ruptcy.” See “Lehman Brothers Email Regarding Punishing Short Seller,” http://oversight.house.gov/storyasp?ID=2208.
114 set off for Korea: According to flight records obtained by the
114 The Shilla: http://www.shilla.net/en/seoul/.
114 Hana Financial, which was also considering an investment: Hana Financial Group was one of several top South Korean banks (Shinhan, Woori) reportedly contemplating a Lehman bid. The company, however, publicly “denied any interest in joining a consortium bidding for Lehman Shares.” K im Yeon-hee, “K DB Confirms Lehman Talks; Korea Bank Shares Fall,” Reuters, September 1, 2008.
116 Matthew Lee … sent a letter: Report of the Examiner in the Chapter 11 proceedings of Lehman Brothers Holdings by Anton R. Valukas, chairman of Jenner & Block. See: http://lehmanreport.jenner.com/.
