<\/span>Apparently unknown to Fuld, someone at Lehman had drafted a letter to employees “outlining a $3.5 billion investment from Buffett in Lehman’s preferred stock at $54 per share conversion price.”<\/p>\n<\/span>That turned out to be a surprise for Buffett, “because he never got close to a deal with Lehman.”<\/p>\n<\/span>Based on a September 22, 2009 interview with Buffett, the report says, “Two items immediately concerned Buffett during his (March 28) conversation with Fuld.”<\/p>\n<\/span>First, “Buffett took it as a negative that Fuld suggested that Lehman executives were not willing to participate in a significant way” by investing in the firm under the same term.<\/p>\n<\/span>Second, Buffett thought Fuld’s complaints about short sellers indicated a “failure to admit one’s own problems.”<\/p>\n<\/span>At Fuld’s request, Treasury Secretary Henry Paulson later called Buffett to “signal” he would like the billionaire to invest in Lehman, but Paulson “did not load the dice.”<\/p>\n<\/span>Buffett “cemented” his decision not to invest after reviewing Lehman’s 10-K and learning of a “$100 million problem in Japan that Fuld had not mentioned during their discussions.”<\/p>\n<\/span>The report also notes that Barclays talked to Buffett in September about the possibility he might guarantee Lehman’s operations until a deal between Lehman and Barclays closed. Buffett “expressed interest” but Barclays did not pursue the matter.<\/p>\n<\/span>Buffett described that episode in an interview last September<\/strong><\/a> <\/strong><\/b>with CNBC’s Becky Quick.<\/p>\n<\/span>Here’s the Berkshire excerpt from volume two of the Examiner’s report:<\/p>\n<\/span>Excerpt from Lehman Examiner Report on Warren Buffett and Berkshire Hathaway<\/a>
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