The Murder of Lehman Brothers: An Insider's Look at the Global Meltdown (Hardcover)

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Editorial Reviews

Review

"Tibman offers a version which feels true."

"a strong sense of Lehman’s history, including what Tibman sees as Fuld’s finest hour, the aftermath of 9/11...This doesn’t mean he lets Fuld off for his many mistakes, and Tibman is good on the way Fuld’s embattled, paranoid worldview had seeped into the mentality of the bank, and helped prevent people realising just how deep a hole they were in." --John Lanchester in The London review of Books

"Everyone knew that subprime lenders aided and abetted mortgage fraud. To my knowledge, the only investment banker who wrote candidly about the subject was Joseph Tibman, who was at Lehman when it collapsed, and wrote The Murder of Lehman Brothers: An Insider’s Look at the Global Meltdown."

"Tibman believes that as much as anything, what killed Lehman was Fuld's emasculation of the risk management function, which served as a moral compass." The Huffington Post, David Fiderer

"What it does better than anything else is humanize a firm and its employees in a way that's been rare of late."

"The Murder of Lehman Brothers" is a better book [than A Colossal Failure of Common Sense]"

"He [Tibman] presents a more nuanced portrait of the firm, its leadership, particularly CEO Richard Fuld, and the rank and file."

"So who (or what) killed Lehman? Tibman presents a more complex and shifting judgment, which is one of the strengths of the book."

"...moves quickly and inexorably."

"...the lesson from Tibman's memoir of Lehman is the profound ambiguity of a seductive culture and an all-powerful, if Wizard of Oz-like leader." --The Deal Magazine

"What's interesting about this read is that it provides you with a different viewpoint of the crisis from the inside."

"...this account is fresh, opinionated, and truly has a tenured insider feel."

"Given that so much greed (and irrationality) often abounds on Wall Street, the fact that Tibman's work takes aim at this is laudable." --Seeking Alpha

"I recommend you read The Murder of Lehman Brothers to find out why the financial crisis happened."

"This is the only [financial crisis book] that brings Wall Street culture to life and shows how reckless excess was fed by Washington politicians."

"'Joe' doesn't pull any punches with his mea culpas about "drinking the Kool-Aid," "rationalizing away risks...of delusional financiers."

"I'm touting this book not only because it rings true about the Wall Street I know, but because it implicates the Washington political leaders who paved the way for Wall Street's excessive risk taking and predatory lending." --Capital Gains and Capital Games

"The Murder of Lehman Brothers is a compelling narrative of one insider's journey within the burning walls of the failed investment bank... a fresh account" --Market Folly

"One of the best books on the financial crisis so far."

"A vibrant and straight account from a veteran insider"

"..goes beyond simply casting the blame on Fuld and his first circle'...and depicts the pernicious effects of American economic policy."

"The book is particularly valuable because it presents a more human figures of what has become the symbol of this financial crisis without trying to settle personal accounts." Lehmanites.com

"Tibman has probably written the most user-friendly account of LB's demise and guide to the economic collapse of 2008."

"His first-person perspective provid[es] a connection with the events and the firm that is missing from the many other books on LB."

"...much of what he has written appears sincere and genuine, written with a welcome bluntness and honesty." --Civilian Reader (UK) - Stefan Fergus

"This is a great story narrated by someone that is quite candid in the wheeling and dealings of a once proud investment banking firm."

"... highly readable... and well paced...insight that will keep you turning the pages." --BookPleasures

"Joseph Tibman, you've written a great book."

"A fascinating history that covers nearly 20 years of Dick Fuld's rise and fall at Lehman."--Donald R. van Deventer, PhD - Kamakura

"Explosive"--N'Digo Chicago Weekly, Matthew Sapaula, Host of Money Smart Radio

Product Description

On the first anniversary of the murder of Lehman, Joseph Tibman, a 20-year veteran and senior investment banker, reveals in plain English, the people and forces that share responsibility for this catastrophe. His shattering account is told as only a true Lehman insider's account could be told, by someone who spent two decades at the firm.

Writing under pseudonym, Joseph Tibman, the author explains the feud that erupted, soon after the death of the last Lehman Family CEO, between the two "houses" of Lehman--the investment bankers and the sales and trading group. He provides the most detailed account on record of the rise of Dick Fuld from junior trader to CEO who rose above his legendary inarticulateness nickname just once, but profoundly, at the seminal, game-changing moment of the 9/11 attacks.

The Murder of Lehman Brothers is the story of greed run amok. The story is told in the words of someone who was there when Lehman, post 9/11, became the firm that always outperformed; someone who was a witness to what a small handful of people inside Lehman did to crush it with the assistance of misguided, inept politicians and a dysfunctional, antiquated regulatory infrastructure. The Murder of Lehman Brothers is not only for those who earn their livings (or used to) working in the financial markets. It is written simply for anyone who wants to understand the perfect storm of screw-ups that has led to the current crisis. It is a primer that explains why action must be taken to ensure no one is ever again in a position to dismantle the system or bet the bank, bringing down major institutions and threatening the entire global economy.

CLICK ON "SEE ALL EDITORIAL REVIEWS" TO READ THE PROLOGUE, AN AMAZING DICK FULD TALE NEVER BEFORE IN PRINT

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Product Details

• Hardcover: 245 pages
• Publisher: Brick Tower Books; 1st edition (October 15, 2009)
• Language: English
• ISBN-10: 188328371X
• ISBN-13: 978-1883283711
• Product Dimensions: 9.1 x 6.2 x 1 inches
• Shipping Weight: 1.2 pounds (View shipping rates and policies)
• Average Customer Review: 4.1 out of 5 stars  See all reviews (16 customer reviews)
• Amazon.com Sales Rank: #7,399 in Books (See Bestsellers in Books)

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Customer Reviews

Most Helpful Customer Reviews

26 of 28 people found the following review helpful:

5.0 out of 5 stars An absrbing and enlightening book by an honest insider, October 29, 2009

By	accidentalreviewer "accidentalreviewer" (Somers, NY) - See all my reviews

I am a retired college professor. Like most Americans, I am not expert in finance and economics. Fortunately my retirement savings are conservatively invested, and so I did not suffer life-changing losses after Lehman filed for bankruptcy protection, but I know many who did. Like many, I found myself anxious to understand what had happened to cause such hardship for so many people. I have never before written an Amazon review, but am inspired to do so now because reading "The Murder of Lehman Brothers" profoundly transformed and deepened my understanding of the financial crisis. As a former educator I am immensely impressed by this book. It explains the financial crisis for a reader who is not an economist or a financial professional. At the same time, like the most enjoyable of books, I could not put this down. I was hooked as soon as I read the prologue.

I am not generally a reader of business books. However, because the financial crisis has so deeply affected out country, I wanted to understand its causes. While I knew the crisis could not be solely blamed on Lehman Brothers, I thought a Lehman book would explain what happened at that investment bank in a larger context. I saw Lawrence McDonald's "Colossal Failure of Common Sense," a book by a former Lehman employee, on the New York Times bestseller list and decide to give it a try. The book was a highly readable disappointment. It did in fact simplistically blame the Lehman failure on a handful of Lehman executives, and did so with considerable anger. It is a given that large global events are rarely so easily explained.

Several weeks later I came across Joseph Tibman's book. To be honest, the dramatic title was initially a turn-off. I expected the book to be mainstream pulp by a greedy investment banker seeking to cash in on the crisis. However, as I flipped through the book, I could see that this was actually something very different. There were chapters devoted to the causes of the crisis. Also, I noticed that there were a substantial number of footnotes on many of the pages. These explain financial terms and concepts so that a reader like me can more thoroughly understand what happened.

most importantly, this book enables its readers to understand events that were previously too technical to grasp. At the same time this is by no means a textbook. In fact the prologue and ther passages read like a novel. What Tibman accomplished is a neat trick that, as a published professor, I know is extraordinarily difficult. He has written a book one "cannot put down,' a page-turner that also teaches. After completing "The Murder of Lehman," I found myself explaining the financial crisis to friends. To my great surprise, when they challenged my reasoning, I was able to substantively respond. It was only then that I realized that the book subtly allowed me to form my own view of certain events open to interpretation. While Tibman has many strong views and an ability to communicate his incites, not everything in "The Murder of Lehman Brothers" is presented as black ans white. This is one of the books accomplishments. It does not pretend to have all of the answers. As is always the case with events of this magoitude, years hence historians will disagree about this financial meltdown.

The Murder of Lehman Brothers begins with an excellent prologue that reads like a novel. It was this that initially hooked me, and led me to explore further. The first chapter is summarized history of the firm. While I read it, there were interesting passages that may not be similarly appreciated by younger readers -- the firm financed industries that were a backdrop to many years of my life. At the same time, this is a chapter for all to read carefully. I found myself, flipping back to it. Much that occurred years ago formed a basis for, or at least foreshadowed, what would later happen to the firm. This larger context always exists, but in books of this type (non-fiction that is has many elements of a memooir) is often absent. The next chapter, on the aftermath of 9/11 at Lehman is the most emotional chapter. It is here that you see Tibman's passion for Lehman Brothers most poignantly expressed. Tibman also had the good sense to forego gruesome descriptions of the 9/11 assault. Instead you hear a very American tale of people subsequently coming together under adversity. It was also, in reading this chapter, that as a lifelong liberal Democrat I viewed investment bankers as people rather tha greed driven tacit criminals operating within laws they had lobbied for in Washington.

From this point forward the author begins to explain the roots of the financial crisis, skillfully weaving this into his narrative. The tender feelings for Lehman investment bankers and traders in the 9/11 chapter were mitigated by the questionable ethics among many in the financial world that are later described. Of course, this is as it should be. Little in this book is presented as black and white. Consistent with this, while the author clearly lays a great deal of blame for the current economic crisis at the feet of politicians and regulators in Washington, he does not pick sides. Given my own political views, I was initially unhappy and disappointed that Tibman was outspoken about failings of the Clinton administration. I told myself that after all he was turning out to be a typical Wall Street Republican. But then, tt wasn't long before I saw Tibman equally criticize Republicans. A positive of this book is that in the tradition of journalism I was unable to discern Tibman's political leanings. It is, however, apparent that he views few in Washington as up to the job of regulating the financial sector.

Much of the balance of the book explains the unfolding crisis at Lehman. While Tibman doesn't interupt this with calls for change, it is difficult to see how anyone, Republican, Democrat or Independent, could come away from this book without realizing that economic recovery by itself is not a fix for all that is wrong in Washington and financial markets. While Tibman does not preach, it is clear that he intends this book in part as a call to arms. In fact he quotes from the film "Network" a scene where a newscaster encourages his viewers to open their windows and shout, "Im mad as hell and I'm not going to take it anymore."

While there is even more to praise than that which I have covered in this review, in the interest of balance I will point out the few shortcomings of the book. As mentioned above, it is part narrative and therefore, by definition, is not without indulgence. Of course, it is also the personal aspect of the book that makes it so compelling. I'm not sure this could be avoided by any insider writing such a book, but it is an imperfection. Additionally, in a chapter or two, while explaining many of the causes of the financial crisis, Tibman moves back and forth in time. This did not derail me, but a discussion of events in perfect chronological order could have made for a somewhat smoother read.

These are minor complaints. I have been lending the book to friends and I recommend it to everyone who can read. I suppose the book may reveal less to many on Wall Street than to the rest of us. Still, the book makes clear that Wall Street must change. It could do no harm for financial professionals who shoulder a substantial portion of the blame for what has happened to our country to hear from one among them this outcry. To Tibman's credit (perhaps facilitated by writing under a pseudonym) he makes no excuses for his own place in an industry where ethics are not a consideration. Such admissions are uncommon.

10 of 12 people found the following review helpful:

4.0 out of 5 stars thanks for making it personal, October 8, 2009

By	Matthew De Angelis "true average joe" (Durham, NH USA) - See all my reviews (REAL NAME)

This is a good book. Not a great book. For folks without a financial background but with an intellectual curiosity, it puts into perspective the elements of a perfect storm that culminated in the LB disaster. It's great to have the different blamable forces called out - to see how past Presidents helped create the fiasco, how government agencies lived up to the levels of incompetence we always feared they had (but prayed they didn't), how the Fed (wizards?) black magic stirred the pot that would become the maelstrom, how a culture of Kool-Aid drinking savage money addicts (i.e.the Street folks) deluded themselves, and how everyday people who desperately wanted the 'American Dream' let themselves feast on the pile of crap that was mounding before them. Let's not forget Fuld and Gregory - they deserve an ineffable amount of blame. I'm going to have a hard time trusting investment banks after this. But then we should have guessed. When it's too good to be true, it ain't. You never get something for nothing. Fool me once ... let's not go there (I'll leave that to W). It will all happen again. The system is BROKEN ... The book rings all too true. But it is tedious in places (I could have been spared pages and pages of company history and internal politics - maybe Street people will enjoy the details). There's no way this book could have been written by someone who had only a few short years at the company. It has a depth that makes it convincing, it's not only well researched, it's told from a perspective that is the essence of what makes this book recommendable - it's told from the perspective that 'it's personal'. There are expletives here and there ... after reading it ... not nearly enough!

7 of 8 people found the following review helpful:

4.0 out of 5 stars A Very Candid Narrative, October 21, 2009

By	Norman Goldman "Editor of Bookpleasures.com" (Montreal) - See all my reviews (TOP 500 REVIEWER)    (REAL NAME)

On September 15th, 2008 Lehman Brothers filed for Chapter 11 bankruptcy. It was the largest bankruptcy filing in U.S. history entailing over six hundred billion dollars in assets.

In view of the recent high-profile content that is found in the media and the Internet concerning the Wall Street meltdown, the timing of Joseph Tibman's (a pen name) The Murder of Lehman Brothers: An Insider's Look at the Global Meltdown could not have been better. For twenty years, Tibman, which is a pen name, worked as an investment banker at Lehman Brothers.

A great many of us are still in the dark as to what actually went wrong at Lehman Brothers and why did it have such a huge world-wide financial impact. Moreover, why was it permitted to fail while others were saved? According to Tibman, timing may have been a factor, but this is not the entire story, as there were many forces that collided to cause the collapse. It is these forces that are detailed in the book and explained in plain English with some foot notes to clarify financial jargon that makes it such an intriguing story. Tibman does admit that he is at a loss as to how many intelligent people who played a role in the catastrophe, some at critical junctures, made the choices of blind, unthinking fools. And as he states, "because this factor figures so prominently in Lehman's death, I do not consider the firm's murder calculated or premeditated."

Tibman begins his book with a short history of Lehman Brothers from the time the first of the three brothers, Henry emigrated from Bavaria to Montgomery, Alabama in 1844. Within a few years his other two siblings, Emmanuel and Mayer joined him, and it didn't take them too long to establish a full-fledged commodities brokerage company. In 1870 the surviving two brothers expanded to New York where they became pivotal players in the establishment of the New York Cotton Exchange, the nation's first commodities futures trading organization. They were also instrumental in the establishment of several other exchanges. In 1887 they began selling and trading securities and joined the New York Stock Exchange. All of this preceded their early twentieth century vibrant activities when Phillip Lehman, Emmanuel's son became president to be followed by his son Robert "Bobbie" Lehman, who ruled with an iron fist for forty-four years until his death in 1969. When Bobbie died, the dynasty was finished as there was no heir to take his place, and he left behind a divided firm filled with a great many back- stabbing executives. After a power struggle, Frederick Ehrman, who was at Lehman since 1929, emerged as the next head of the firm. He was to be followed by Pete Peterson, Lewis Glucksman and Dick Fuld. Tibman provides his readers with an interesting insight as to how each one of these CEO's ran the Lehman Brothers' ship and devotes considerable ink to Fuld, whom he describes as an "absolute monarch" who had become "little more than the most powerless of constitutional royals."

Tibman devotes an entire chapter to an examination of the subprime debacle, and as he states: "What really eats away at me is Lehman's part in all of it. And admittedly, there is a certain justice that Lehman, and for that matter Bear Stearns, paid the ultimate price as leaders, at least among investment banks, of an insidious market phenomenon that proved so destructive."

Overall, much of Tibman's commentary is filled with birds-eye detail about his twenty years of observing the dynamics of Lehman Brothers which he compares to the cyanide-laced Kool-Aid that Jim Jones, the founder and leader of the People's Temple in Jonestown, Guyana, and his followers drank in November 1978. Blindly, his followers drank Jones' nonsense that they would soon be attacked by paratroopers.

In other words, there was a herd mentality that genuinely believed that Lehman Brothers could survive anything thrown in its way even the irrational risk-taking and financial fads that had disastrous repercussions. Tibman aptly places the story of Lehman Brothers in the context of the broader picture involving external forces that eventually led to the Wall Street meltdown.

This is a great story narrated by someone that is quite candid in the wheeling and dealings of a once proud investment banking firm that ran amok due to its errant and misguided behavior that was aided by inept politicians and poor regulations. In a highly readable fashion and well paced, Tidman presents the Lehman Brothers crisis with a great deal of thoroughness and insight that will keep you turning the pages.

Norm Goldman, Publisher & Editor of Bookpleasures