In this chapter I will end the story that characterized the four knights of the apocalypse.
I’ll talk about Richard Fuld, the third of the four horsemen of the apocalypse, joined Lehman Brothers bank as an intern (we all went from there) in 1966, in 1994 he became Ceo multiplying the bank’s value by 15 times.
Richard Fuld (just look him in the face) is arrogant and conceited on Wall Street he was called the “Gorilla” for his determination to destroy his opponents and anyone who got on his way.
Richard Fuld was an incredibly greedy person to buy junk financial products, even Jordan Belfort’s company sold toxic securities to Lehman Brothers. Richard Fuld was the most greedy of the four horsemen of the apocalypse, he and his collaborators invested in a highly speculative and unholy manner.
Lehman Brothers was so indebted and Richard Fuld was convinced that Henry Paulson would save the bank, the saying: Too Big to Fail (like James Woods’ movie) was not enough and in the end Henry Paulson did not help Lehman Brothers.
Because they are two very proud characters, when Paulson met Fuld to suggest selling the bank, the answer was sent back to the sender, let’s not forget that Lehman was the direct competitor of Goldman Sachs.
I also remember that Henry Paulson, one of the four horsemen of the apocalypse had been CEO of Goldman Sachs and as often happens in certain “environments” there are possible conflicts of interest, despite this not saving Lehman Brothers was a mistake that caused an earthquake in global financial markets.
Richard Fuld for his careless and uncontrolled management (greed) would have to pay with his estate (Palm beach property with tennis court for example) since he had millionaire fees from the bank, if a normal person created such a situation he would be in prison (the law should be the same for everyone).
The last of the four horsemen of the apocalypse is Bernard (Bernie) Madoff, a character who left a $65 billion hole, an incredible event given his reputation, Madoff had everyone’s trust on Wall Street and around the world.
Bernard Madoff left Queen’s where at the age of 22 he married Ruth and after several jobs became a trader in the 1960s, at the time it was a job where so many people aspired to become for the great gains of the world of finance. Also in those years he founded his own investment company, think that in the 80s Bernard Madoff managed to make 10% of the trades on Wall Street reaching a personal wealth of 1 billion dollars.
Madoff has concocted a real scam against his clients, this situation took place inside his offices in particular on floor 17, where investments with “special conditions” took place. In practice, Bernard Madoff guaranteed a return on investment of 10% per annum as long as clients did not ask questions.
During charity nights, wealthy people competed to become his clients, particularly the Jewish community of Palm Beach. A Florida city surrounded by greenery where there are wonderful golf courses, I want to point out that in Palm Beach there are the richest people in the world and I have to say that there is a particular culture among people of Jewish religion because everyone knows each other and has confidence, I do not know how to say: a city within another city.
You think access to golf courses costs between $300,0000 and $40,0000, and you have to prove you’re doing a lot of charity.
Bernard Madoff not only lent Palm Beach rich people but several banks and investment funds around the world with his reputation, he essentially applied a real Ponzi scheme where the last customers arrived paid interest for those already in the system. Yes, you read well, a simple $65 billion Ponzi scheme well, this scheme exploded after Lehman Brothers went bankrupt when Bernie’s clients started withdrawing money from the fund causing the collapse.
Madoff falsified financial statements and documents that he regularly sent every 3 months to his clients without giving rise to suspicion, but the question is where was the SEC to control and avoid a $65 billion disaster?
Madoff, called by some “Jewish Bond” made 2 serious mistakes: the first to rip off the Jewish community and beyond, the second thinking he felt smarter than the others in fact is the only one of the four knights of the apocalypse who will end his last days of life in prison.
At the end of the film Bernard Madoff paid the highest bill but the other 3 horsemen of the apocalypse had a terrible role that we pay today after 12 years.