Lehman CEO Fuld finds reputation at risk

By Joseph A. Giannone

NEW YORK (Reuters) - Long regarded as one of Wall Street's top bosses, Dick Fuld's reputation has taken a beating.

The Lehman Brothers Holdings Inc chief executive is battling to keep the 158-year-old firm afloat amid the worst global financial crisis in decades. At the same time, Fuld, the survivor of numerous market slumps, hopes once again to prove the naysayers wrong.

On Wednesday, Lehman posted a $3.9 billion third-quarter loss after writing off nearly $8 billion of risky mortgage and real estate assets, its second straight quarterly loss. The firm also is selling 55 percent of its asset-management unit and planning to spin depressed assets off its books.

The moves may revive Lehman or simply give Fuld time to sell the company. Either way, Lehman's struggles this year have seriously tarnished his 15-year tenure as CEO.

"A CEO's reputation inevitably is tied to the price of the common stock, and Lehman's has taken a big hit," said Bruce Foerster, who served under Fuld at Lehman before founding South Beach Capital Markets in 1994.

Lehman shares tumbled 88 percent this year to a decade low. The market now values the company at less than one-third of its book value.

Fuld has won a reputation as a survivor and top-notch leader since coming to Lehman as a trader 30 year ago. He endured in-fighting that led to the firm's sale to Shearson/American Express in 1984 and was running Lehman when it was spun off -- undervalued and unwanted -- in 1994.

GORILLA