Well, this should help GE’s stock, which has largely plummeted since last Monday. It seems Dick Fuld reached out to GE CEO Jeff Immelt for help before his firm filed for bankruptcy only to be rebuffed by the head of the consumer goods conglomerate. Good thing for GE investors that he didn’t bite—the company has a raft of its own problems. But, back to Lehman: Immelt’s not the only one who turned down Fuld.
New York Post: Lehman Brothers’ CEO Richard Fuld reached out to General Electric CEO Jeff Immelt about taking an investment in the embattled investment bank prior to its collapse, sources tell The Post.
Fuld had hoped Immelt would take as much as a 20 per cent stake in Lehman in order to quiet the then-mounting questions surrounding Lehman’s toxic $630 billion balance sheet. Immelt, however, opted to take a pass…
Sources said that Fuld months ago also turned to American International Group’s then-CEO Marty Sullivan to arrange a deal.
Indeed, it seems Fuld had been trying to sell Lehman for a few months prior to its downfall.
Fuld’s efforts to sell a big stake in Lehman started two or three years ago – long before the bank’s recent worries – when he began looking for partners to provide the firm with a “strategic advantage” and more stability in its stock price.
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