New York City – Lehman Shareholder: I Lost $6M Overnight

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    New York City – One shaken Lehman shareholder had a million reasons to mourn the loss of his former company yesterday.

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    Actually, 6 million.

    “I’ve lost more than $6 million overnight,” lamented David Shorr, standing in front of Lehman Brothers’ Midtown headquarters as hundreds of stunned and depressed workers milled around him.

    “I’m wiped out,” said the 49-year-old Upper East Sider.

    Shorr currently works as a “wealth adviser,” a senior vice president, at Morgan Stanley. But he spent years at Lehman before that – and said his stocks and benefits from his tenure at the now-defunct investment powerhouse are all worthless.

    Shorr could muster only a slight smile as he read a large sidewalk placard, with an unflattering depiction of Lehman CEO Richard Fuld, being signed by angry employees and onlookers.

    “What the hell was he thinking?” asked Shorr, who placed much of the blame on the hard-charging executive who has been one of the country’s highest-paid CEOs.

    When asked if he had any hopes of recovering his nest egg, Shorr just shook his head and waved his hand.

    “It’s gone,” he said with a sigh.

    Fueling the anger at Fuld are reports that the CEO refused multiple bailouts offers, including a chance, as recently as August, to sell a 25 percent stake in Lehman for $4 billion to $6 billion to Korea Development Bank.

    Several Lehman employees leaving their offices yesterday declined to be interviewed. But one desperate veteran worker met the request with one of his own: “Can you pay me for my story?”


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    39 Comments
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    Anonymous
    Anonymous
    15 years ago

    i lost 30 grand in fannie

    Anonymous
    Anonymous
    15 years ago

    this is terrible. so many people have lost their retirement funds and savings.

    less people will be able to give tzedakah and more people will be needing it.

    G-d willing, things will get better for all. AMEN

    `.
    `.
    15 years ago

    I guess the one positive of not having any money is I don’t have to worry about loosing it 🙂

    formely frum
    formely frum
    15 years ago

    `. Says:

    comments – arrow I guess the one positive of not having any money is I don’t have to worry about loosing it 🙂

    09-16-2008 – 9:34 AM

    true dark humor, but I feel worse for people who work like dogs for very little money and never had the opportunity or pleasure of having some monetary wealth. We should feel worse for those people than someone (i do feel bad for him) who had 6 million and lost it. I do not think that guy is worried how he is going to buy milk or bread for his kids if he has any.

    Lets give tzduka and pray for the really poor in our community.

    Enough
    Enough
    15 years ago

    I can not relate to this. I live from ck to ck and if i lost $100.00 by budget would go out of whack. I imagine people who can tuck this amount away, live well. I doubt that he invested everything with one firm. Although the rug was pulled out from under him, I doubt that he’s headed for the good Food Stamp office.

    keep perspective
    keep perspective
    15 years ago

    should all of us not able to make ends meet and up all night worriying about food, clothes, housing and of course yeshiva tuitions feel too bad about rich guys losing millions in market downturn. Boo hoo — now he has SVP job at Morgan making parnossah no doubt. He should ashamed to even be upset — he has a job, pays bills, provides for family…. case closed.

    WolfishMusings
    WolfishMusings
    15 years ago

    I feel very bad for Mr. Shorr, but let this be a lesson to everyone — diversification is the key. If you have $6 million in a single stock, then you are asking for trouble. I find it very difficult to understand how a “wealth adviser” can have made such an elementary mistake that cost him $6 million. The only excuse for having $6 million wrapped up in one company is if your portfolio is so large that the loss of the $6 million won’t hurt you, which, from Mr. Shorr’s description, seems not to be the case.

    The Wolf

    nchemye farnuminer
    nchemye farnuminer
    15 years ago

    I lost 30k that I don’t have to tuition

    The end
    The end
    15 years ago

    He probably had stock options that he got by working at Lehman, and they probably were restricted shares that could not be sold for a few years.

    nchemye farnuminer
    nchemye farnuminer
    15 years ago

    …….The only excuse for having $6 million wrapped up in one company is if your portfolio is so large that the loss of the $6 million won’t hurt you……

    wolf there are certain investments that employees get that they cannot touch do your research

    yidelmitn fidel
    yidelmitn fidel
    15 years ago

    LIKE THE HUNT BROTHERS USED TO SAY:

    A BILLION AIN’T WHAT IT USED TO BE !

    WolfishMusings
    WolfishMusings
    15 years ago

    “He probably had stock options that he got by working at Lehman, and they probably were restricted shares that could not be sold for a few years.”

    Ah, OK, that explains a lot. Thanks for the information. Nonetheless, he still should have had other retirement options (a funded 401(k) or IRA, etc.) While it might not make up for the loss of that much money, at least you won’t starve when you do decide to retire.

    The Wolf

    Anonymous
    Anonymous
    15 years ago

    Not everyone has the zchus to give tzadaka (as per R Ahron Kotler ztzl)

    Anonymous
    Anonymous
    15 years ago

    And once again you would think that people would learn from the ENRON fiasco.

    If you already have 4 million stacked in todays economy then take it and stop being a pig and waiting for another f ew million. Take your money and run with it.

    It’s sad when you see people work very hard to get where they are and then in 24 hours see all of the hard work and earnings out the window.

    Anonymous
    Anonymous
    15 years ago

    call 1800 stock loss. I made some of my money back with this company.

    Anonymous
    Anonymous
    15 years ago

    It makes me sick to read how people look down on someone who loses 6 million and say he can afford it. You don’t know what it’s like until you live in the person’s shoes.

    All of you whining about 30 grand or $100 throwing your budget out of whack, what the heck are you doing on line, wasting your time? get out there and make another 100 or 30,000. put some elbow grease into it and stop complaining when other people who have paid their dues and slaved for their family are taking real losses.

    political analyst
    political analyst
    15 years ago

    diversifying is key.

    don’t put all your eggs in one basket.

    I learn the hard way years ago, no matter how good something looks, circumstances can change unexpectedly, & if you’ve got everything in the same basket….

    dan
    dan
    15 years ago

    Well Thank G-d I sold my stock in March.

    exactly
    exactly
    15 years ago

    all nonsece the velt is a galgal hachozer its known for ceturies. nobody is forsure with anything.

    Anonymous
    Anonymous
    15 years ago

    Get real, these people did not work for the money, it was stolen from the real owners of the company (shareholders) with ridiculous bonuses. The Gov’t and lawyers should go seize last years bonuses because if they were given out of phantom profits they were not deserved.

    Anonymous
    Anonymous
    15 years ago

    why are frum yiden such kveches?

    Anonymous
    Anonymous
    15 years ago

    Well whoever still owns a Bank stock is mabid atzmo ldas

    Anonymous
    Anonymous
    15 years ago

    Welcome to Capitalism.

    One day you are rich, and the next you are poor.

    I think that we are slipping into a severe depression. I have witnessed several recessions, but nothing on this magnitude!

    Lutzi Hungarian
    Lutzi Hungarian
    15 years ago

    I have forint and dollars so I am protected, Also It is a good idea to invest in potatoes, the potato lasts for a very long time and if you cant resell it you could always eat it. Also I am thinking of buying shekels

    Its all relative
    Its all relative
    15 years ago

    It is all relative.

    Everyone has their standards.

    To some, making kiddush on a 1.50 grape juice is Shabbosdik;

    to others, its a 4.50 bottle of wine,

    and to others, its a 45, 100.00 bottle of wine (or more,!)

    If you have 1 maya, you want 2

    If you have 100 mayos, you want 200.

    If you have 1000 mayos, you want 2000.

    So the more mayos you have, the more you are lacking, therefore, the ‘richer’ you are the ‘poorer’ you feel.

    While the concept of ‘millions that x gambled’ may be unfathomable to some, it comes with an equal number of expenses that we see popular personalities such as sports figures/ celebrities spend in the long run that comes with the territory.

    Who is truly rich? to paraphrase pirkei avos; who is happy with their portion.

    Easy to read during the summer; more challenging to live by!

    Anonymous
    Anonymous
    15 years ago

    No, potatoes turn green and at that time are not very healthy

    Avraham Abba
    Avraham Abba
    15 years ago

    I feel bad for every one of us who lost.

    May H. forgive us all this Rosh Hashana and Yom Kippur and may we all dance together with great happiness on Succos!!!

    cycle trader
    cycle trader
    15 years ago

    why didnt mr. schorr buy some put options on his restricted stock position years ago when lehman was trading at $60?

    he was wreckless so he lost

    such a great investment adviser should have known better

    greed kills

    cycletrader
    15 years ago

    this is a huge lesson for anyone having a large position in one stock to hedge that position with put options

    Anonymous
    Anonymous
    15 years ago

    i lost nothing cos i have nothing !

    Joe
    Joe
    15 years ago

    What about Liberty Point Bank? Are they secure?

    cycletrader
    15 years ago

    all bank deposits are insured at least up to $100,000.00 by the federal government per depositor if you have more than $100,000.00 put it in another bank

    Matzahlocal101
    Matzahlocal101
    15 years ago

    Most of the people posting are allegedly orthodox Jew what ever happened to G-d? This sounds like a modern orthodox Kiddush, i.e., Judaism without G-d. If I had only diversified. If I had only hedged. If I had only sold my stock in August. If I had only listened to uncle Fred. If I had only been smart enough NOT to listen to uncle Max….

    Guys, there is a G-d in the world. He watches over banks, stock markets, and individual potfolios, If he wants , they go up, if he wants, they go down, we are entering the slichos season. Nothing happens coincidently “bimikra” and if we think it does, Hashem tells us: “Im tailech imi bakeri (mikra)…. and it aint pretty. Our money, our children, and our lives are in his hand. The more we acknowledge that, the better chance we stand on Rosh Hashana, when our parnasa for next year is determined.

    -Ksiva vchasima toiva

    financial adviser
    financial adviser
    15 years ago

    to Enough,

    A smart move to save u money is by canceling your DSL..

    and of course if u have a credit card, just cancel and cut it..

    Yitzchok
    Yitzchok
    15 years ago

    Shalom. Everyone losing no matter how much money is lost. Whether you lost a dime to 6 million in Schorrs case. Its all relative in that its loss which unites as people. We all lose so we all got something in common. Therefore refrain from looking at someone that lost 6 million dollars and concentrating on those that lost 30,000 dollars as more deserving.

    And I think G-d may lean more to the guy with 6 million dollars than to the one with 30,000 dollars from the types of comments am seeing.

    Yitzchok
    Yitzchok
    15 years ago

    Sorry just to correct last comment after rereading… These losses in these days should unite us rather than divide us. Even the greatest speculator makes mistakes sometimes. Some days you have bad days… sometimes good… Noone could have forseen Lehman Brothers out of all institutions going bust, if anyone had suggested this three years ago, people would have locked them in the lunatic asylum.

    Yitzchok
    Yitzchok
    15 years ago

    Also to the hungarian dude, you can ferment potatoe too… makes a nice vodka lol.

    Anonymous
    Anonymous
    15 years ago

    10:15am- you talk about perspective but you can’t see the perspective of someone who lost 6 million dollars, his life savings, overnight. you’re a (sanctimonious) fool!

    Anonymous
    Anonymous
    15 years ago

    On Rosh Hashona it is decreed what each person will earn that year. So if you lose or gain wealth, it was already preordained and it is not in your hands. If you have emuna and bitochon in Hashem, then you shouldn’t have any worries.