The Skimmer

Book Review: A Colossal Failure of Common Sense by Lawrence G. McDonald

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A Colossal Failure of Common Sense: The Inside Story of the Collapse of Lehman Brothers

A Colossal Failure of Common Sense: The Inside Story of the Collapse of Lehman Brothers By Lawrence G. McDonald with Patrick Robinson; Crown Business; 368 pages

Dick Fuld was warned. Years before Lehman Brothers tumbled into bankruptcy, roiling markets and setting off a string of massive bailouts, underlings informed the investment bank's CEO that Lehman should get out of real estate before the credit bubble burst. Fuld ignored them. So while the bank's chief loaded up on overpriced property from the 31st floor of Lehman's New York City headquarters, his bond traders were downstairs shorting shares of mortgage brokers. Lawrence G....

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