American Scandal – Lehman Brothers | The Gorilla of Wall Street | Episode 1

Host: Lindsay Graham
Podcast: American Scandal (Wondery)
Date: January 13, 2026

Episode Overview

This episode launches the series exploring the rise and catastrophic collapse of Lehman Brothers, with a close focus on its formidable CEO, Dick Fuld—nicknamed "The Gorilla of Wall Street." The narrative tracks Fuld’s ascent through the firm, his ruthless drive, and the increasingly reckless bets that led Lehman directly into the teeth of the 2008 financial crisis. Through dramatized scenes, interviews, and archival insights, host Lindsay Graham dissects the high-stakes culture of Wall Street, Fuld’s leadership style, and the systemic failures that culminated in the largest bankruptcy in history.

Key Discussion Points and Insights

1. Lehman’s Collapse and Fuld’s Congressional Testimony (00:00–05:09)

The episode opens on October 6, 2008, with Fuld arriving at the House Committee hearing amidst protestors calling out “Shame” and “Crook.”
Representative Peter Welch presses Fuld on why Lehman was allowed to fail while other banks were bailed out.
Fuld laments the unfairness and states, “I will wonder that until the day they put me in the ground.” [Quote, 03:37]
- Notable for capturing Fuld’s bitterness and sense of betrayal.

2. Setting the Scene: The Rise and Fall of Lehman Brothers (05:10–08:22)

Host Lindsay Graham describes the scope and impact of Lehman’s bankruptcy: $600 billion in liabilities and the ensuing global financial panic.
Fuld is introduced as “the Gorilla”—feared for his aggressive leadership and admired for engineering the firm’s growth in the early 2000s.
Lehman’s headlong plunge into mortgage-backed securities and the subsequent denial of mounting risk foreshadow the disaster.

3. Dick Fuld’s Early Career and the Making of ‘The Gorilla’ (08:23–13:47)

Flashback to 1966, Denver: Fuld, as a summer intern, faces humiliation but steels himself, vowing to prove his worth.
His aggressive, competitive style quickly earns him the “Gorilla” moniker.
Lehman’s turbulent history includes an acquisition by American Express and return to independence in 1994—with Fuld named CEO.

4. Fuld’s Ambitious and Relentless Leadership (13:48–19:39)

Fuld designs a culture of extreme loyalty and hard work; lunch breaks are frowned upon, and competitors become “the enemy.”
Under his vision, Lehman achieves record profits and transforms into a powerhouse by the firm’s 150th anniversary.
Memorable moment: Despite outward bravado, Fuld suffers a panic attack on his first night as CEO, revealing hidden vulnerability.

5. Lehman After 9/11: Grit and Opportunity (19:40–25:05)

In the aftermath of 9/11, with Lehman headquarters destroyed, Fuld rallies the firm, moves into a new skyscraper, and pushes for further expansion.
Fuld, drawn to the mortgage-backed security gold rush, increases Lehman’s risk profile despite internal misgivings.

6. Warning Signs: Internal Dissent and Unheeded Warnings (25:06–35:41)

Senior executive Mike Gelband repeatedly warns Fuld about the housing bubble and the dangers of runaway leverage.
Dramatized exchange:
- Gelband: “I'm worried about the real estate market… The entire thing could collapse.”
- Fuld: “Risk is what got me here. And frankly, it’s what got you here too. Best you remember that. And drink your damn champagne.” [Quote, 32:30]
Gelband eventually resigns in frustration, warning, “Greed is going to drive this company into the ground.” [Quote, 56:18]

7. Wall Street, Washington, and Missed Warnings (35:42–47:58)

Treasury Secretary Henry “Hank” Paulson is introduced as a cautious realist, pushing for greater regulatory power to prevent a meltdown.
Paulson’s attempt to persuade President George W. Bush to act is rebuffed.
- Bush: “You want me to get the government into the business of taking over investment banks? … I believe in the free market.”
- Paulson: “Even free markets need an emergency plan.” [Exchange, 44:57–45:24]
Despite Paulson’s concern, the administration takes no meaningful action.

8. Fuld and Paulson: Unexpected Allies (47:59–53:25)

Paulson calls Fuld, seeking a real-time view of Wall Street’s mood, leading to a tentative, mutually beneficial relationship.
Nevertheless, Fuld remains convinced Lehman is invincible—and the safety net of government intervention will always be there if necessary.

9. Lehman Goes All-In: Euphoria and Brinkmanship (53:26–59:20)

By 2006, Lehman is the world’s largest underwriter of subprime mortgage-backed securities, leveraging massively (32:1 ratio).
Fuld views risk as an essential component of success, likening Lehman’s fragile financial structure to “paving a road with cheap tar… Quick and easy, potholes may appear when the weather changes, but that’s a problem for the future.” [Quote, 59:06]

10. Crisis Looms and Consequences Arrive (59:21–End)

End of 2006: Default rates rise, but Lehman presses on, profits masking underlying fear.
Gelband’s warnings go unheeded, leading to his high-profile resignation and emotional farewell.
Fuld, convinced of Lehman’s systemic importance, barrels ahead. By 2007, Lehman is exposed with $111 billion in risky assets.
Mortgages begin to default; the financial system seizes up. The fall of Bear Stearns in early 2008 shakes Wall Street—and Fuld is urgently summoned home, finally confronted by the collapse he never believed possible.

Notable Quotes & Memorable Moments

Dick Fuld’s Defiance:
“I will wonder that until the day they put me in the ground.” — Dick Fuld, on being denied a bailout (03:37)
On Risk:
“Risk is what got me here. And frankly, it’s what got you here too. Best you remember that. And drink your damn champagne.” — Fuld to Gelband (32:30)
Bush/Paulson Showdown:
“You want me to get the government into the business of taking over investment banks?... I believe in the free market.” — President George W. Bush (44:57)
“Even free markets need an emergency plan.” — Hank Paulson (45:24)
On Greed’s Cost:
“Greed is going to drive this company into the ground.” — Mike Gelband (56:18)
Fuld’s View of Risk:
“Paving a road with cheap tar… Quick and easy, potholes may appear when the weather changes, but that’s a problem for the future.” — Narration, describing Fuld’s attitude (59:06)

Timeline of Important Segments

[00:00] Fuld faces Congress amid protest
[05:10] Lindsay Graham introduces the scale of Lehman’s collapse
[08:23] Fuld’s early years at Lehman
[13:48] Building Lehman’s war-room culture
[19:40] Lehman after 9/11
[25:06] Gelband’s warnings begin
[32:30] The “champagne” confrontation
[44:57] Bush/Paulson regulatory debate
[53:26] Lehman at the peak of risk (leverage, subprime exposure)
[56:18] Gelband’s resignation
[59:06] Fuld’s “cheap tar” analogy
[1:02:00+] Financial system cracks; Bear Stearns collapses; Fuld gets the wake-up call

Tone & Storytelling

The tone is tense, engaging, and often somber—mirroring the gravity of the stakes and the arrogance, denial, and eventual fear gripping Wall Street. Scenes are dramatized but grounded in research, with dialogue that captures not just events but the personalities and motivations of those at the center—especially Dick Fuld’s mix of bravado, paranoia, and, ultimately, vulnerability.

Conclusion & What’s Next

Episode 1 ends with Fuld racing back to New York, finally forced to face the crisis he long dismissed, while Lehman stands on the precipice. The series promises to delve deeper into the unraveling of both the firm and its leader, exposing not just financial misjudgment but the cultural and personal flaws that made collapse inevitable.

American Scandal – Lehman Brothers | The Gorilla of Wall Street | Episode 1

Host: Lindsay Graham
Podcast: American Scandal (Wondery)
Date: January 13, 2026

Episode Overview

Key Discussion Points and Insights

1. Lehman’s Collapse and Fuld’s Congressional Testimony (00:00–05:09)

The episode opens on October 6, 2008, with Fuld arriving at the House Committee hearing amidst protestors calling out “Shame” and “Crook.”
Representative Peter Welch presses Fuld on why Lehman was allowed to fail while other banks were bailed out.
Fuld laments the unfairness and states, “I will wonder that until the day they put me in the ground.” [Quote, 03:37]
- Notable for capturing Fuld’s bitterness and sense of betrayal.

2. Setting the Scene: The Rise and Fall of Lehman Brothers (05:10–08:22)

Host Lindsay Graham describes the scope and impact of Lehman’s bankruptcy: $600 billion in liabilities and the ensuing global financial panic.
Fuld is introduced as “the Gorilla”—feared for his aggressive leadership and admired for engineering the firm’s growth in the early 2000s.
Lehman’s headlong plunge into mortgage-backed securities and the subsequent denial of mounting risk foreshadow the disaster.

3. Dick Fuld’s Early Career and the Making of ‘The Gorilla’ (08:23–13:47)

Flashback to 1966, Denver: Fuld, as a summer intern, faces humiliation but steels himself, vowing to prove his worth.
His aggressive, competitive style quickly earns him the “Gorilla” moniker.
Lehman’s turbulent history includes an acquisition by American Express and return to independence in 1994—with Fuld named CEO.

4. Fuld’s Ambitious and Relentless Leadership (13:48–19:39)

Fuld designs a culture of extreme loyalty and hard work; lunch breaks are frowned upon, and competitors become “the enemy.”
Under his vision, Lehman achieves record profits and transforms into a powerhouse by the firm’s 150th anniversary.
Memorable moment: Despite outward bravado, Fuld suffers a panic attack on his first night as CEO, revealing hidden vulnerability.

5. Lehman After 9/11: Grit and Opportunity (19:40–25:05)

In the aftermath of 9/11, with Lehman headquarters destroyed, Fuld rallies the firm, moves into a new skyscraper, and pushes for further expansion.
Fuld, drawn to the mortgage-backed security gold rush, increases Lehman’s risk profile despite internal misgivings.

6. Warning Signs: Internal Dissent and Unheeded Warnings (25:06–35:41)

Senior executive Mike Gelband repeatedly warns Fuld about the housing bubble and the dangers of runaway leverage.
Dramatized exchange:
- Gelband: “I'm worried about the real estate market… The entire thing could collapse.”
- Fuld: “Risk is what got me here. And frankly, it’s what got you here too. Best you remember that. And drink your damn champagne.” [Quote, 32:30]
Gelband eventually resigns in frustration, warning, “Greed is going to drive this company into the ground.” [Quote, 56:18]

7. Wall Street, Washington, and Missed Warnings (35:42–47:58)

Treasury Secretary Henry “Hank” Paulson is introduced as a cautious realist, pushing for greater regulatory power to prevent a meltdown.
Paulson’s attempt to persuade President George W. Bush to act is rebuffed.
- Bush: “You want me to get the government into the business of taking over investment banks? … I believe in the free market.”
- Paulson: “Even free markets need an emergency plan.” [Exchange, 44:57–45:24]
Despite Paulson’s concern, the administration takes no meaningful action.

8. Fuld and Paulson: Unexpected Allies (47:59–53:25)

Paulson calls Fuld, seeking a real-time view of Wall Street’s mood, leading to a tentative, mutually beneficial relationship.
Nevertheless, Fuld remains convinced Lehman is invincible—and the safety net of government intervention will always be there if necessary.

9. Lehman Goes All-In: Euphoria and Brinkmanship (53:26–59:20)

By 2006, Lehman is the world’s largest underwriter of subprime mortgage-backed securities, leveraging massively (32:1 ratio).
Fuld views risk as an essential component of success, likening Lehman’s fragile financial structure to “paving a road with cheap tar… Quick and easy, potholes may appear when the weather changes, but that’s a problem for the future.” [Quote, 59:06]

10. Crisis Looms and Consequences Arrive (59:21–End)

End of 2006: Default rates rise, but Lehman presses on, profits masking underlying fear.
Gelband’s warnings go unheeded, leading to his high-profile resignation and emotional farewell.
Fuld, convinced of Lehman’s systemic importance, barrels ahead. By 2007, Lehman is exposed with $111 billion in risky assets.
Mortgages begin to default; the financial system seizes up. The fall of Bear Stearns in early 2008 shakes Wall Street—and Fuld is urgently summoned home, finally confronted by the collapse he never believed possible.

Notable Quotes & Memorable Moments

Dick Fuld’s Defiance:
“I will wonder that until the day they put me in the ground.” — Dick Fuld, on being denied a bailout (03:37)
On Risk:
“Risk is what got me here. And frankly, it’s what got you here too. Best you remember that. And drink your damn champagne.” — Fuld to Gelband (32:30)
Bush/Paulson Showdown:
“You want me to get the government into the business of taking over investment banks?... I believe in the free market.” — President George W. Bush (44:57)
“Even free markets need an emergency plan.” — Hank Paulson (45:24)
On Greed’s Cost:
“Greed is going to drive this company into the ground.” — Mike Gelband (56:18)
Fuld’s View of Risk:
“Paving a road with cheap tar… Quick and easy, potholes may appear when the weather changes, but that’s a problem for the future.” — Narration, describing Fuld’s attitude (59:06)

Timeline of Important Segments

[00:00] Fuld faces Congress amid protest
[05:10] Lindsay Graham introduces the scale of Lehman’s collapse
[08:23] Fuld’s early years at Lehman
[13:48] Building Lehman’s war-room culture
[19:40] Lehman after 9/11
[25:06] Gelband’s warnings begin
[32:30] The “champagne” confrontation
[44:57] Bush/Paulson regulatory debate
[53:26] Lehman at the peak of risk (leverage, subprime exposure)
[56:18] Gelband’s resignation
[59:06] Fuld’s “cheap tar” analogy
[1:02:00+] Financial system cracks; Bear Stearns collapses; Fuld gets the wake-up call

Lehman Brothers | The Gorilla of Wall Street | 1

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Summary

American Scandal – Lehman Brothers | The Gorilla of Wall Street | Episode 1

Episode Overview

Key Discussion Points and Insights

1. Lehman’s Collapse and Fuld’s Congressional Testimony (00:00–05:09)

2. Setting the Scene: The Rise and Fall of Lehman Brothers (05:10–08:22)

3. Dick Fuld’s Early Career and the Making of ‘The Gorilla’ (08:23–13:47)

4. Fuld’s Ambitious and Relentless Leadership (13:48–19:39)

5. Lehman After 9/11: Grit and Opportunity (19:40–25:05)

6. Warning Signs: Internal Dissent and Unheeded Warnings (25:06–35:41)

7. Wall Street, Washington, and Missed Warnings (35:42–47:58)

8. Fuld and Paulson: Unexpected Allies (47:59–53:25)

9. Lehman Goes All-In: Euphoria and Brinkmanship (53:26–59:20)

10. Crisis Looms and Consequences Arrive (59:21–End)

Notable Quotes & Memorable Moments

Timeline of Important Segments

Tone & Storytelling

Conclusion & What’s Next

Suggested Reading

Summary

American Scandal – Lehman Brothers | The Gorilla of Wall Street | Episode 1

Episode Overview

Key Discussion Points and Insights

1. Lehman’s Collapse and Fuld’s Congressional Testimony (00:00–05:09)

2. Setting the Scene: The Rise and Fall of Lehman Brothers (05:10–08:22)

3. Dick Fuld’s Early Career and the Making of ‘The Gorilla’ (08:23–13:47)

4. Fuld’s Ambitious and Relentless Leadership (13:48–19:39)

5. Lehman After 9/11: Grit and Opportunity (19:40–25:05)

6. Warning Signs: Internal Dissent and Unheeded Warnings (25:06–35:41)

7. Wall Street, Washington, and Missed Warnings (35:42–47:58)

8. Fuld and Paulson: Unexpected Allies (47:59–53:25)

9. Lehman Goes All-In: Euphoria and Brinkmanship (53:26–59:20)

10. Crisis Looms and Consequences Arrive (59:21–End)

Notable Quotes & Memorable Moments

Timeline of Important Segments

Tone & Storytelling

Conclusion & What’s Next

Suggested Reading