Investment banker whose warnings Lehman ignored dies at 49

Carnation

Sad to report.

Lawrence McCarthy, a Senior Managing Director at Cantor Fitzgerald who, as an executive at Lehman Brothers, was said to have predicted that credit-default-swap traders were 'working on bringing down the whole world', has died. He was 49.

He died Wednesday at Roosevelt Hospital in New York. The cause was an aneurysm, his ex-wife, Suzanne McCarthy, said in a telephone interview. He had been in ill health with a heart ailment, she said.

'We lost a good man and a good friend and a good family man, one of the most well-known names in the distressed community, and a great co-worker', Adam Vengrow, co-head of New York-based Cantor Fitzgerald’s credit fixed-income group, said in an interview.

McCarthy was a major character in Lawrence McDonald’s 2009 book, A Colossal Failure of Common Sense: The Inside Story of the Collapse of Lehman Brothers.

McDonald said McCarthy dissented loudly as Lehman Brothers continued to bet on the U.S. housing market in the form of collateralized debt obligations. He quoted McCarthy saying at a 2007 meeting, 'I know a little about gambling, and I know a lot about risk. We have too much. Far, far too much'.

Hit the link below to access the complete Bloomberg article:

Lawrence McCarthy, Who Saw Swaps Danger at Lehman, Dies at 49

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