Tom Reese/Paul Rubillo, Dividend.com
The federal government, seemingly intent on pinning the blame for the subprime mess on some top executives, has issued several subpoenas today.
Reuters is reporting that prosecutors have subpoenaed a dozen executives of Lehman Brothers Holdings Inc. [LEHMQ.PK], including CEO Dick Fuld, in connection with three grand jury probes investigating the fall of the once-mighty investment bank.
Each major Wall Street scandal, from Tyco to Enron, has always ended with someone having to walk the proverbial plank. This crisis will be no different.
The most interesting part of this investigation will be what details, if any, surface about how Lehman's downward spiral may have been exacerbated by some of the company's competitors.
The Bottom Line
Wall Street is a rough place to play, and when there is blood in the water, the industry sharks circle to take advantage of the wounded. Maybe we'll learn more about how the windows of doing business closed around Lehman Brothers, and who may have profited greatly from Lehman's demise. Our guess is the same firms that contributed to Bear Stearns' collapse probably also benefited from Lehman's demise.
Will we learn more about the how the game is played? Probably not, but it would sure make for some great TV.
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