Dick Fuld, Disgraced Former CEO Of Lehman Brothers, Makes Bizarre Comeback

Dick Fuld, part villain and part unforgivably very confused bystander to the financial crisis in the eyes of most -- and a victim of the financial crisis to himself -- made a bizarre comeback at a conference in midtown New York hotel on Thursday.

In his first public appearance (other than sworn congressional testimony) since the collapse of Lehman Brothers, Fuld blamed regulators, borrowers and rumors for the end of the 158-year-old, $47 billion firm he led. It was a “perfect storm” that sank Lehman, not his own leadership or decisions, Fuld said, while touting Lehman’s “success” to the audience. He also claimed that every one of the 27,000 employees who once worked for Lehman had been a risk manager, because they owned stock in the firm.

Lehman’s September 2008 collapse was the first of many bank failures and market seizures that fall. It sparked the financial crisis that ended in a $416 billion bank bailout and left the country mired in the Great Recession.

Fuld's comments were initially carried live on the financial news network CNBC, but the feed was pulled by conference organizers part way through his remarks. Technically, Fuld was at the Marcum Microcap conference to deliver a keynote address titled, "How Emerging Growth Companies Can Succeed in Today's Capital Markets: Perspectives from My Journey." His comments, however, were a well-rehearsed if less-than-convincing defense of his own actions leading up to the largest bankruptcy in U.S. history.

He denied that Lehman was a failed company in September 2008 and intimated that he and the firm were victims of a conspiracy centered around former competitors in regulatory positions with a vendetta against him. Fuld, nicknamed the “Gorilla” during his career for his overly aggressive style, seemed temperamentally unchanged, telling one conference questioner, “Why don’t you bite me?”

Months prior to Lehman’s fall, Fuld had declared that “the worst of the impact of the financial markets is behind us” and pushed subordinates to take more risk, sidelining or firing those who disagreed with him.

Fuld is now working at his own firm, Matrix Advisors, which is focused on the kind of small deals he would have scoffed at as CEO of a massive investment bank. The venue itself was an indication of his fall: an otherwise barely noteworthy conference focused on selling shares in tiny public companies.

Women Need To Listen To This Advice Given To Yahoo CEO Marissa Mayer

You may think the advice that one super-successful corporate titan gives to another super-successful almost-CEO is something you can safely ignore.

Yet the last thing that Google founder Sergey Brin told Marissa Mayer right before she ascended to the throne of chief executive of Yahoo is something we all need to hear. Especially women.

In an interview with Patricia Sellers at Fortune, Mayer dished about the guidance Brin gave her in the minutes before Yahoo announced her appointment back in 2012. She said that Brin gave her all sorts of minor advice that she later wound up acting on -- like changing the Yahoo logo, one of the first things she did as CEO.

But as she was headed out the door, Brin called her back, Mayer told Sellers. "'Marissa, wait! Don’t forget to be bold,'" he said.

That’s it. That’s the advice women need to hear. Because many of us have confidence issues. I reported earlier Wednesday on a new study that offered up more evidence of the problem. The study revealed that female college students are less confident about their job and salary prospects than men.

It is the latest brick in a hard wall of evidence that shows women hold themselves back at work by not aiming higher. Facebook Chief Operating Officer Sheryl Sandberg talked about the issue in her highly publicized book “Lean In,” and the Atlantic published a long piece last year called the Confidence Gap that detailed a lot of depressing examples of women’s propensity to be very much not bold.

In one anecdote, authors Katty Kay and Claire Shipman tell the story of their friend who supervises two direct reports: Rebecca and Robert. Rebecca plugs away at her job, diligently doing good work. When she needs to talk to the boss, she makes an appointment. She doesn’t speak up in client meetings. When she gets tough feedback, sometimes she cries. Meanwhile, Robert is at the boss’s office door constantly with new ideas. A lot of them are bad, but he doesn’t seem to care.

Kay and Shipman wrote:

Our friend had come to rely on and value Rebecca, but she had a feeling it was Robert’s star that would rise. It was only a matter of time before one of his many ideas would strike the right note, and he’d be off and running—probably, our friend was beginning to fear, while Rebecca was left behind, enjoying the respect of her colleagues but not a higher salary, more responsibilities, or a more important title.

Of course, as the authors note, women are often in a double-bind when it comes to boldness. Women who are bossy and decisive at work are often labeled as "bitches." But things are changing, thanks to people like Sandberg and Mayer herself.

We can also thank some great new female comics. In a recent episode of “Inside Amy Schumer” called “I’m Sorry,” there’s a hilarious takedown of the female propensity to undersell ourselves and apologize for no reason. It involves a fake panel of women geniuses who step over themselves with self-deprecating nonsense.

You should check it out. Meanwhile, I’m so sorry for taking up your time with this.

Big Banks Plead Guilty To Market Manipulation, Will Pay $5.8 Billion

The age of multibillion-dollar bank fines with no admission of wrongdoing is over. The Justice Department announced Wednesday morning that five banks pleaded guilty to market manipulation, while also paying billions of dollars in fines.

Barclays, Citigroup, J.P. Morgan and the Royal Bank of Scotland admitted to illegally distorting foreign exchange markets. The banks formed what they called "The Cartel" and aimed to set a key currency marker, known as "the fix," at mutually beneficial values.

The fix is set every day at 4 p.m. London time and is used in the more than $5 trillion currency market to determine the price of trades and the value of large institutional holdings. Traders at the banks used instant messaging chat rooms to discuss where to set the fix.

In addition to admitting guilt, the banks will also pay fines. Barclays will pay $650 million, Citigroup $925, million J.P. Morgan $550 million and RBS $395 million. Barclays will pay another $1.3 billion to New York State, federal and U.K. regulators.

The Justice Department said it was charging the banks' parent companies because the wrongdoing was pervasive, and that the banks' punishment was "fitting considering the long-running and egregious nature of their anticompetitive conduct." To put the fines in context, in 2014, Barclay's net income was $3.5 billion, Citigroup's was $7.3 billion, J.P. Morgan's was $21.8 billion and RBS' was $3.9 billion.

A fifth bank, UBS, pleaded guilty to manipulating the London Interbank Offered Rate, which is called Libor. Libor is the most important international interest rate benchmark. UBS will pay $545 million in fines to the Justice Department and Federal Reserve. The value of more than $300 trillion in debt is tied to Libor.

The five banks will pay a further $1.6 billion in fines to the Federal Reserve.

This story has been updated to include more information from the Justice Department and the 2014 income of the banks mentioned.

Takata Recalls Nearly 34 Million Air Bags

WASHINGTON (AP) — Under pressure from U.S. safety regulators, Takata Corp. has agreed to declare 33.8 million air bags defective, a move that will double the number of cars and trucks included in what is now the largest auto recall in U.S. history.

The chemical that inflates the air bag can explode with too much force, blowing apart a metal inflator and sending shrapnel into the passenger compartment. The faulty inflators are responsible for six deaths and more than 100 injuries worldwide.

The announcement was made Tuesday afternoon by the heads of the Department of Transportation and the National Highway Traffic Safety Administration, which reached an agreement with Takata after sparring with the company for the past year over the size of the recalls and the cause of the problem.

Eleven automakers, including Honda Motor Co. and Toyota Motor Corp., have recalled 17 million vehicles in the U.S. and more than 36 million worldwide because of the problem. It's unclear which manufacturers will be most affected by the expansion of the recall.

The Takata air bag recall dwarfs last year's highly publicized recall of 2.6 million General Motors small cars for defective ignition switches and Toyota's recalls of 10 million vehicles for problems with unintended acceleration.

NHTSA Administrator Mark Rosekind said investigations by the agency and auto industry haven't determined precisely what's causing Takata's inflators to explode, but said the agency cannot wait for a cause to take action.

"We know that owners are worried about their safety and the safety of their families," he said. "This is probably the most complex consumer safety recall in U.S. history."

He said people who get recall notices in the mail should immediately make an appointment to get their cars fixed.

____

AP Auto Writer Dee-Ann Durbin contributed from Detroit.

Apple CEO Tim Cook Urges GWU Graduates To Develop Moral Compass

Apple CEO Tim Cook urged graduating George Washington University students to follow their values and find a job that helps them do good in a commencement speech delivered Sunday.

Cook talked of justice and injustice in a speech that paid homage to Martin Luther King Jr., Robert F. Kennedy and Jimmy Carter, delivered to a crowd on the National Mall in Washington, D.C., VentureBeat reported. The university expected about 25,000 people to attend the commencement exercises, according to the outlet.

The CEO mentioned the civil rights leader three times in his 20-minute speech, and said that King, along with Kennedy, had been one of his childhood heroes.

Cook, who grew up in Alabama, shared a story about his first visit to the nation's capital in 1977, at the age of 16. On the trip, Cook met with then-President Carter right after meeting Alabama's governor, George Wallace, who had opposed desegregation in the '60s. (Wallace is perhaps best remembered for his 1963 inaugural address that called for "segregation now, segregation tomorrow and segregation forever.")

“Meeting my governor was not an honor for me,” Cook told the graduates. “Shaking his hand felt like a betrayal of my own beliefs. It felt wrong, like I was selling a piece of my soul.”

It was very different from meeting America's then-president, Cook said.

“Carter was kind and compassionate. He held the most powerful job in the world, and had not sacrificed any of his humanity,” he said. “It was clear to me that one was right and one was wrong."

Cook ended with a call for graduates to live their values and change the world -- and said that working at Apple had helped him do just that:

We believe that a company that has values and acts on them can really change the world. And an individual can too. That can be you. That must be you. Graduates, your values matter. They are your North Star. Otherwise it’s just a job -- and life is too short for that. ... You don’t have to choose between doing good and doing well. It’s a false choice, today more than ever.

Your challenge is to find work that pays the rent, puts food on the table, and lets you do what is right and good and just.

Words to aspire to.

CORRECTION: A previous version of this article stated incorrectly that Cook spoke about John F. Kennedy. He spoke about Robert F. Kennedy.

The States With The Most Stay-At-Home Fathers

Not too long ago, it was practically unheard of for a father to raise his children full-time instead of working for money. In the 1970s, only six U.S. men identified themselves as stay-at-home parents. Not 6 percent -- six men, in the entire country.

Last year, by contrast, an estimated 1.9 million fathers remained home with the kids -- accounting for 16 percent of the stay-at-home parent population, according to a HuffPost analysis of U.S. Census data.

That’s definitely a huge step forward for fathers seeking to shed the stigma that still lingers around the idea of a man as primary caretaker. But the figure comes with a significant caveat: Most fathers aren't staying home voluntarily. According to one prominent researcher, 80 percent of those 1.9 million dads would be working outside the home if they could.

The reasons why any parent might stay home are complex and often very personal. The job market is certainly a factor, but the cost of child care and cultural issues also likely play a key role, says Noelle Chesley, an associate professor of sociology at the University of Wisconsin-Milwaukee who has researched stay-at-home fathers.

The Huffington Post took a state-by-state look at men as stay-at-home caregivers, as seen in the map and table in this article. We found some instances where high proportions of dad caregivers seemed to correspond with high unemployment rates. In West Virginia, for example, where men account for an estimated 30 percent of stay-at-home parents, the unemployment rate is 6.6 percent -- well above the national average of 5.4 percent -- and the percentage of adults who are employed is the lowest in the nation.

Yet elsewhere, the correlation did not hold. In South Dakota, for example, 39 percent of stay-at-home parents are fathers, but unemployment is comparatively low.

The very definition of "stay-at-home dad" is also up for debate. The Census Bureau defines the term very narrowly, excluding same-sex partners, single dads and parents of kids who are older than 15, as well the fathers in families where both parents do not work.

Our analysis used a broader definition: any father who's been unemployed for at least a year, and who is also at home with a child or children under 18. With this approach, we sought to replicate the methodology used by the Pew Research Center in a 2014 report.

[Click the column header to sort the data]

The States With The Most Stay-At-Home Fathers

Not too long ago, it was practically unheard of for a father to raise his children full-time instead of working for money. In the 1970s, only six U.S. men identified themselves as stay-at-home parents. Not 6 percent -- six men, in the entire country.

Last year, by contrast, an estimated 1.9 million fathers remained home with the kids -- accounting for 16 percent of the stay-at-home parent population, according to a HuffPost analysis of U.S. Census data.

That’s definitely a huge step forward for fathers seeking to shed the stigma that still lingers around the idea of a man as primary caretaker. But the figure comes with a significant caveat: Most fathers aren't staying home voluntarily. According to one prominent researcher, 80 percent of those 1.9 million dads would be working outside the home if they could.

The reasons why any parent might stay home are complex and often very personal. The job market is certainly a factor, but the cost of child care and cultural issues also likely play a key role, says Noelle Chesley, an associate professor of sociology at the University of Wisconsin-Milwaukee who has researched stay-at-home fathers.

The Huffington Post took a state-by-state look at men as stay-at-home caregivers, as seen in the map and table in this article. We found some instances where high proportions of dad caregivers seemed to correspond with high unemployment rates. In West Virginia, for example, where men account for an estimated 30 percent of stay-at-home parents, the unemployment rate is 6.6 percent -- well above the national average of 5.4 percent -- and the percentage of adults who are employed is the lowest in the nation.

Yet elsewhere, the correlation did not hold. In South Dakota, for example, 39 percent of stay-at-home parents are fathers, but unemployment is comparatively low.

The very definition of "stay-at-home dad" is also up for debate. The Census Bureau defines the term very narrowly, excluding same-sex partners, single dads and parents of kids who are older than 15, as well the fathers in families where both parents do not work.

Our analysis used a broader definition: any father who's been unemployed for at least a year, and who is also at home with a child or children under 18. With this approach, we sought to replicate the methodology used by the Pew Research Center in a 2014 report.

[Click the column header to sort the data]