Business

Fuld: I’m not built for Street life

Former Lehman Brothers CEO Dick Fuld, who ran one of the largest Wall Street firms before its 2008 collapse, decided to end his two-year tenure at Legend Securities amid mounting regulatory scrutiny concerning his role at the small brokerage firm, FOX Business Network reported yesterday.

The problem for Fuld centered on regulators’ continued questioning of how much business he was generating at the firm and Fuld’s inability to obtain brokerage licenses from state regulators, according to people with direct knowledge of the matter.

Anthony Fusco, the CEO of Legend Securities, would neither confirm nor deny the circumstances behind Fuld’s departure. Fuld didn’t return telephone calls or an e-mail placed through his attorney.

Fuld is one of Wall Street’s most controversial players. Known as the “gorilla” for his tough management style, he spent nearly 30 years in the business, all of them at Lehman Brothers, rising to the position of CEO as he built the firm into one of Wall Street’s largest. But Lehman’s September 2008 collapse, and his role in the firm’s demise, remains a stain on his record.

Lehman’s bankruptcy sparked the broader collapse of the US financial system. Many blame Fuld for the firm’s business model that focused on taking big risks in real estate.

Since then, Fuld has been the focus of numerous regulatory probes over his actions during the firm’s final days, but regulators are unlikely to file charges.

In May of 2010 he finally landed a job, when he registered with securities regulators as being an employee of a little-known brokerage firm called Legend Securities, which describes itself as “a full-service brokerage and investment banking firm,” according to its Web site.

People who know Fuld tell FOX Business that the controversy surrounding his days at Lehman made it difficult for Fuld to get a job at a more established outfit.