Lehman Managers Portrayed as Irresponsible

Richard S. Fuld Jr. blamed the news media. He blamed the short-sellers. He blamed the government, as well as what he characterized as an “extraordinary run on the bank.” But the chief executive of Lehman Brothers Holdings, the bankrupt remnant of a once-great investment house, never really blamed himself.

Instead, in his first public appearance since Lehman’s collapse, Fuld said in sworn testimony before a Congressional panel on Monday that while he took full responsibility for the debacle, he believed all his decisions “were both prudent and appropriate” given the information he had at the time. That stance did not sit well with angry members of the House Committee on Oversight and Government Reform.

Source: New York Times

Markets Fall on Doubts Rescues Will Succeed

The global financial crisis has taken a perilous turn: As government efforts to tame it grow more aggressive, markets are becoming less confident those efforts will succeed. On Monday, the Federal Reserve and European governments stepped up relief efforts, above and beyond the $700 billion rescue package approved by the Congress last week. But markets around the world responded with a massive vote of no confidence.

Source: Wall Street Journal

Obama Widens Lead in Two Polls Less Than Month Before Election

Barack Obama has widened his lead over Republican presidential rival John McCain in two national polls and is maintaining an edge in two daily tracking polls with less than a month to go before the election. An NBC-Wall Street Journal poll found Obama supported by 49% of registered voters, a 6-point margin over McCain.

Source: Bloomberg

Oil prices fall as financial turmoil goes global

Oil prices plunged below $90 a barrel Monday, coming within reach of year-ago levels as a widening financial maelstrom spreads overseas and crimps global demand for energy. A barrel of oil has not been this cheap in eight months, suggesting that the climate in which oil soared to unheard of levels is coming to an abrupt end.

Source: Associated Press via BusinessWeek

Business Cool Toward McCain’s Health Coverage Plan

American business, typically a reliable Republican cheerleader, is decidedly lukewarm about Senator John McCain’s proposal to overhaul the health care system by revamping the tax treatment of health benefits, officials with leading trade groups say.

Source: New York Times

A.M.D. to Split Into Two Operations

Advanced Micro Devices plans to announce Tuesday that it will split into two companies — one focused on designing microprocessors and the other on the costly business of manufacturing them — in a drastic effort to maintain its position as the only real rival to Intel. In addition, the company said two Abu Dhabi investment firms would inject at least $6 billion into the two firms.

Source: New York Times

Zoellick: Break Up the Group of Seven

World Bank President Robert Zoellick said on Monday, Oct. 6, that the global financial crisis is getting “a wake-up call,” indicating that the world’s financial system needs a fundamental shakeup. Western industrial powers should disband their clubby Group of Seven, and embrace a more flexible, broader-based group of nations reflecting today’s more dispersed financial realities.

Source: BusinessWeek

Asian Stocks Decline; Australia Rebounds on Interest-Rate Cut

Asian stocks fell on concern surging credit costs will deepen a global slowdown. Shares pared losses and U.S. futures gained after an Australian interest-rate cut spurred speculation more central banks will follow. Toyota slumped 4.6%, losing its spot as the world’s largest automaker by value to Volkswagen, on concern car demand will decline

Source: Bloomberg

Can GM and Ford Scrape By?

Just three months ago, General Motors Chairman and CEO Rick Wagoner said he was moving to secure $15 billion in cash through asset sales, borrowing, and cost cuts that would see the company through to 2009 even in the worst of times. Barely three months later, with its stock trading at a 54-year low, GM is looking for more ways to save cash.

Source: BusinessWeek

Treasury Names Former Executive To Oversee Rescue Plan Spending

The Treasury Department on Monday named a former Goldman Sachs executive to oversee spending for the $700 billion financial rescue plan. The administration announced it had tapped Neel Kashkari, 35 — an assistant Treasury secretary for international affairs — to head the Treasury’s new Office of Financial Stability on an interim basis.

Source: Washington Post

Conversation of the Day: Dow Drops 370 Points

Reader Phiet Nguyen writes: “I don’t see the market stabilizing anytime soon this year, especially with the credit-default-swaps market starting to unfold.”

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Hot Topic on the Business Exchange: Bailout

Henry Blodget and others are sharing their insights on the government bailout of the U.S. banking sector.