Lehman Brothers Chief Executive Dick Fuld reached out to General Electric Co. for help twice in 2008, as his bank struggled to regain investors' confidence following the collapse of Bear Stearns, according to the report by the examiner in the bank's Chapter 11 proceedings.
In an appendix to the report issued by Anton R. Valukas, chairman of law firm Jenner & Block and examiner in the case, says Mr. Fuld asked GE Chief Executive Jeff Immelt in March 2008 if the conglomerate would be interested in buying a 20% stake in Lehman Brothers.
According to an examiner's interview with former Treasury Secretary Hank Paulson, Mr. Fuld "touted GE as a potential investor" in the spring of 2008, an idea Mr. Paulson considered "absurd." The document said former Lehman Chief Financial Officer Erin Callan e-mailed a deal term sheet to Mr. Immelt on March 30, 2008, but GE declined to take such a strategic stake in the bank.
The report's findings, based on phone records, emails and interviews, offer a window into Lehman's efforts to stem its slide in the desperate and rumor-filled months before it was forced into bankruptcy court in September of 2008. In addition to seeking help from GE, Lehman reached out to American International Group Inc., UBS AG, Mexican billionaire Carlos Slim and Berkshire Hathaway's Warren Buffett, according to the report.
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