David Einhorn On The Problem With Lehman Brothers That Should Not Have Been (JPM, AIG, C, FNM, FRE)

In the recent Value Investing Congress in New York City on Oct 19, all attention was focused on the talk from David Einhorn, the fund manager and president for the long short value oriented hedge fund Greenlight Capital.

In his speech, Einhorn discussed how the government, helmed by Tim Geithner and Ben Bernanke, mishandled the regulation of financial companies like JP Morgan (NYSE: JPM) , AIG (NYSE: AIG), Citigroup (NYSE: C) and other banks and financial institutions.

Einhorn explains how the government allowed companies like Lehman Brothers, AIG, GMAC and GE Capital (NYSE: GE) to become too big that they were thought of as impossible to fail.

Contrary to what they thought, these companies did fail and as a result Industry giants like Lehman Brothers and Bear Sterns closed and started the financial crisis. In addition, the financial woes of companies like AIG, Fannie Mae (NYSE: FNM), Freddie Mac (NYSE: FRE), Citigroup, JP Morgan and other companies continue to burden tax payers with massive bailouts and stimulus plans.

You can read his full speech here:

http://www.scribd.com/doc/21309823/David-Einhorn-Speech-to-Value-Investors