2. Which of the following fallen financial stocks did Bill Miller not own in his Legg Mason Value Trust ( LMVFX) at the end of the second quarter of 2008? A. AIG ( AIG) B. Countrywide Financial C. Freddie Mac ( FRE) D. Lehman Brothers Answer: D Miller had no stake in Lehman Brothers at the end of June, according to the fund's quarterly report. The fund manager, famous for beating the S&P 500 15 straight years, is down 32% in 2008 after stepping on shareholder land-mines, including AIG, Countrywide and Freddie Mac.
4. Former AIG Chief Executive "Hank" Greenberg blamed which CEO for presiding over the company's "virtual destruction of shareholder value built up over 35 years?" A. Robert Willumstad B. Martin Sullivan C. Edward Liddy D. Maurice Greenberg Answer: A Maurice "Hank" Greenberg pointed the finger for his firm's collapse in a letter to then-CEO Robert Willumstad, who replaced Sullivan in June. Sullivan had replaced Greenberg as CEO in 2005 after then-New York state Attorney General Eliot Spitzer accused him of financial misconduct. Liddy was named CEO in the wake of the government's $85 billion bailout.
6. Oppenheimer managing director Meredith Whitney predicted the coming credit crisis in her scathing research reports on banks like Citigroup. Whitney is married to professional wrestler John Layfield, who moonlights as a television stock pundit and is a former contributor to TheStreet.com. Which of the following "ring names" has Layfield wrestled under during his career? A. Bradshaw B. Blackjack C. Vampiro Americano D. Death Mask E. Answers A and B F. All of the Above Answer: F According to the online world of wrestling, Layfield has had a number of gimmicks since first getting into the ring in 1992. The list above comprises but a few.
8. Name the sovereign wealth fund that rejected Lehman's pleas for a multibillion-dollar lifeline just before it collapsed: A. Abu Dhabi Investment Authority B. Government of Singapore Investment Corp. C. Kuwait Investment Authority D. Mizuho Corporate Bank E. Korea Development Bank Answer: E The Korea Development Bank failed to come to terms with Lehman "because of a disagreement over conditions of a transaction and considering domestic and foreign financial market conditions." The rest, as they say, is history.
10. Lehman Brothers' board of directors did not include which of the following in 2008: A. "Dr. Doom" B. Theater producer C. Retired naval officer D. Ex- Halliburton CEO E. Hollywood actress Answer: E Actress Dina Merrill left Lehman's 10-member board in 2006 at the age of 83. Economist Henry Kaufman was known as "Dr. Doom" for his bearish economic policies. Roger Berlind produced Brodway shows, Marsha Johnson Evans was a rear admiral, and Thomas Cruikshank ran Halliburton before joining Lehman's august executive body.