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BUSINESS
Lehman Brothers

Ex-Lehman boss to launch stock exchange this summer

Kaja Whitehouse
USA TODAY

Former Lehman Bros. chief Dick Fuld spoke publicly for the first time on Thursday in part to pave the way for this summer's relaunch of the National Stock Exchange, which Fuld part owns.

The former Lehman chief took to a Manhattan hotel stage on Thursday because he is working on several "higher profile" projects that could soon thrust him into the limelight, including the exchange's relaunch "later this summer," David Karlin, Fuld's business partner, told USA TODAY.

Fuld is part-owner of the 130-year-old electronic National Stock Exchange, which handled only roughly 13 million shares - a minuscule 0.2% of all U.S. stock trading - before it shuttered last year. Fuld's new firm, Matrix Advisors, is not a shareholder, but it worked on the sale to new owners in a deal that closed in February, Karlin said.

"My mother still loves me," Fuld, 69, said in a sometime rambling speech at the Grand Hyatt in Midtown Manhattan, where he was invited to give the keynote address at a conference for companies valued at under $500 million.

Fuld has not spoken publicly since his 158-year-old brokerage and investment bank collapsed under a mountain of risky assets in 2008, and Fuld was called to testify before Congress and called a "villain." The bankruptcy, the biggest in history, catapulted Fuld from Wall Street honcho to central character in the mortgage meltdown that nearly took down Wall Street.

Thursday's appearance is part of Fuld's effort to claw his way back.

The speech, which took place over lunch, was filled with platitudes and veiled references to his downfall. He continued to blame Lehman's collapse on outside forces, including the government. Unlike Bear Stearns, Lehman was not saved by the U.S. government.

"Did we try to do everything we possibly could? Yes. Did we fall prey to some other agendas? I will leave it at that," he said at one point.

The speech also contained some humorous moments.

"I don't include my wonderful time with Congress a public event," he joked about his last public appearance.

Lehman Brothers Holdings Inc. Chief Executive Richard S. Fuld Jr., wearing tie, is heckled by protesters as he leaves Capitol Hill in Washington after testify before the House Oversight and Government Reform Committee Monday, Oct. 6, 2008, on the collapse of Lehman Brothers. (AP Photo/Susan Walsh) ORG XMIT: DCSW114

Fuld took the stage on the understanding that he would not be asked about Lehman's darkest days. But an executive with accounting and advisory Marcum LLP, the conference's host, asked him about that time anyway. This led to some uncomfortable and poignant moments that had the audience riveted.

"Please understand. Not a day goes by where I don't think about Lehman Brothers. Not a day," Fuld said. But the Wall Street boss, who's tough-talking ways earned him the nickname "The Gorilla," also said he wants to "put it behind me."

"My motto is: That was then this is now," Fuld told the audience.

At one point, Fuld, who has been accused of allowing Lehman to take "excessive risk," rattled off an odd laundry list of lessons he's learned over the years. They included:

*"Do your homework and take smart risks."

*"You do not know what you do not know"

*"Enjoy the ride."

As USA TODAY reported Wednesday, Fuld took the spotlight at a time when he is also seeking to reclaim his role on Wall Street.

Fuld owns shares in the National Stock Exchange through two entities that collectively own a 36% stake: Thor Investment Holdings LLC, which owns 16%, and TIP-1 LLC, which owns 20%.

He is also beefing up his advisory firm, Matrix Advisors, including opening a licensed real estate brokerage, Matrix RE Brokerage LLC, and hiring new staffers, including former Goldman Sachs analyst John Yanchek.

Matrix currently has "11 active clients" — a tripling of the firm's size over three years, said Karlin, who also worked at Lehman.

Former Lehman Brothers chief Dick Fuld, a central character in the mortgage meltdown, speaks publicly for the first time on Thursday, May 28th, 2015, at the Hyatt  Regency in NYC since the $30B collapse of his brokerage firm.
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