Thread by Christopher Perkins 🔥NYC

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I was on the trading floor at Lehman when we went bankrupt. Some reflections and lessons learned as we digest the FTX insolvency. The similarities are eerily similar.🧵
1/The cult of Dick Fuld pervaded the building. Employees were encouraged to blindly follow him. Questioning him was sacrilege as “Dick knew best”. Lehman was tightly controlled by a handful of folks at the very top.
2/Arrogance was real. When Bear Stearns went down, senior leadership relished in it, posted $2 bills on the walls (it was originally sold to JPM for $2) and assured us that we were fine. “How could they be so stupid?! This would never happen to us!”
3/The value destruction was severe. Some employees doubled down on Lehman stock as it cratered as Lehman would never go down in flames. This was unimaginable.
4/When we went insolvent, clients called screaming “Where is my f—ing money?” They didn’t realize that it was no longer their money—it was now in the hands of the estate. When assets aren’t legally segregated, that’s what happens.
5/The employees were completely left in the dark. There was no transparency. No word. No leadership. Just a big, black void. Confidence was shaken and fear ruled. The future was uncertain.
6/But dark times often lead to opportunity.
7/During periods of crisis, the best relationships are forged. And relationships matter. I had a client who made a $50mm operational error the day we went bankrupt. Reversing it saved his career. He became a loyal future client for years to follow.
8/Many of the Lehman employees were incredibly talented. People like this always land on their feet. Rather than continue to build out linear careers, many found new opportunities, started new businesses and exponentially grew careers. We had a fresh start.
9/We also had an incredible network. And networks are powerful. As employees found new homes, we had colleagues resurface everywhere across finance and beyond. The shared trauma of Lehman created the strongest of bonds.
10/Today, we still look after each other and help each other grow careers. That Lehman curse is now a badge of honor. We fought through it. We overcame it.
11/ For most of the @FTX_Official employees, we know you had nothing to do with this. Stay strong. This will pass. Look to the future, and take care of one another. The promise of #web3 is out there, and I look forward to watching you build it.
12/And for those of us who are sick and tired of CeFi/Tradfi blow ups including Lehman, Bear Stearns, FTX, Archegos, 3AC, Celsius, MF Global, LTCM, Peregrine.... #DeFi is the solution.
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