Five Years After the Lehman Brothers Bankruptcy Filing, What Happened to the CEOs?
Friday, September 13, 2013
This Sunday is the five-year anniversary of Lehman Brothers filing for the largest bankruptcy in American history. The ensuing financial crisis eventually led to a $700 billion government bailout and plunged the country into the worst recession since the Great Depression.
Alison Fitzgerald, with the Center for Public Integrity, was part of a group of reporters that spent the past several months investigating what happened to men and women —bankers, regulators and CEOs — at the center of the financial storm.
"What we really found was a bunch of men who were still living lives of immense luxury," she said. "Most of the lawsuits and settlements get covered by insurance, so there's not a huge amount of personal risk to taking huge amounts of risk with their clients' money, which is what happened with these companies."
Fitzgerald and other reporters also found that many executives who led the firms that made the kind of mortgage loans that failed most often — sub-prime loans — are back in business doing the same kind of work.