A Politician of a different nature - Lal Bahadur Shastri...

A Politician of a Different nature....  Lal Bahadur Shastri...

At a time when Indian politicians make news for corruption and misuse of power comes a book on Lal Bahadur Shastri, the country's second prime minister who was so upright that he deposited money in government coffers because his sons had used his official car.

The incident has been captured in the book 'Lal Bahadur Shastri: Past Forward' (Konark) by his son Sunil Shastri, a Congress politician and a former minister in Uttar Pradesh.

Sunil Shastri says he used to imagine having a big luxury car commensurate with the status of his 'babuji'(father) and Lal Bahadur Shastri did get a Chevrolet Impala for official use.

'One day I told babuji's personal secretary to ask the driver to bring the Chevrolet to the residence. We asked the driver for the keys and went for a drive,' he says in the book.

Lal Bahadur Shastri later confronted the driver, saying, 'Do you keep a logbook with you?' 'When he nodded, babuji asked him to note the distance the car had run the previous day. When the driver said 14 km, he advised him to note it 'for private use' and then asked amma to give his personal secretary the amount applicable to be deposited in the government account.'

Lal Bahadur Shastri ruled from June 1964 to January 1966, dying in Tashkent where he had gone to sign a treaty with Pakistan after the 1965 war.

The book is replete with instances of how the late Shastri lived - and the values he embraced and preached.

The son recalls how Lal Bahadur Shastri had shed tears upon meeting an Indian soldier badly wounded in the 1965 war with Pakistan.

'I don't have tears in my eyes because my death is near ... but despite being a major I am not able to stand up and salute my prime minister,' the younger Shastri quotes the soldier, who was on a hospital bed, as saying.

And then it was the prime minister who could not control his own emotions. That was the only time he saw his father cry, says his son.

There are many interesting anecdotes on Shastri in the book.

• Lal Bahadur Shastri was told by his mother of his marriage in May 1928 only after he reached Varanasi. 'He was surprised and told his mother that she should have at least asked him once before finalising it. Anyhow since his mother had decided, he said he would abide by her wishes.'

•  When Lal Bahadur Shastri's wife decided to learn Hindi, she paid the tuition fees by dispensing with the domestic maid and doing the household chores herself.
• * Lal Bahadur Shastri often handed over to his wife his khadi kurtas when they became unusable and asked her to make handkerchiefs out of them. 'He lived on the simple philosophy of 'waste not, want not'.'
• * In true Gandhian style, Lal Bahadur Shastri travelled like a commoner in trains even when he was railway minister. 'He lived according to his principles.'
• * During the independence struggle, Lal Bahadur Shastri protested when his wife smuggled two mangoes to him when he was in the Faizabad prison. He was angry because it was illegal for prisoners to have anything other than jail food.
• * Despite his preoccupations as prime minister, Lal Bahadur Shastri was a family man who devoted time to his mother and others when he returned home. It helped him get over the day's fatigue and worries. 

We need Politicians of that Nature Today.. to take India to greater Heights....

Let us Salute Lal Bahadur Shastri....

With warm regards

Manish

Abandon Earth — Or Face Extinction

A Warning by Stephen Hawkings

Stephen Hawking's Warning: 

Abandon Earth—Or Face Extinction

Andrew Dermont on August 6, 2010, 12:00 AM

Let's face it: 

The planet is heating up, Earth's population is expanding at an exponential rate, and the the natural resources vital to our survival are running out faster than we can replace them with sustainable alternatives. Even if the human race manages not to push itself to the brink of nuclear extinction, it is still a foregone conclusion that our aging sun will expand and swallow the Earth in roughly 7.6 billion years.

So, according to famed theoretical physicist Stephen Hawking, it's time to free ourselves from Mother Earth. "I believe that the long-term future of the human race must be in space," Hawking tells Big Think. "It will be difficult enough to avoid disaster on planet Earth in the next hundred years, let alone the next thousand, or million. The human race shouldn't have all its eggs in one basket, or on one planet. Let's hope we can avoid dropping the basket until we have spread the load." 

Hawking says he is an optimist, but his outlook for the future of man's existence is fairly bleak. In the recent past, humankind's survival has been nothing short of "a question of touch and go" he says, citing the Cuban Missile Crisis in 1963 as just one example of how man has narrowly escaped extinction. According to the Federation of American Scientiststhere are still about 22,600 stockpiled nuclear weapons scattered around the planet, 7,770 of which are still operational. In light of the inability of nuclear states to commit to a global nuclear non-proliferation treaty, the threat of a nuclear holocaust has not subsided. 

In fact, "the frequency of such occasions is likely to increase in the future," says Hawking, "We shall need great care and judgment to negotiate them all successfully." 

Even if humans manage to avoid a nuclear stand-off over the next thousand years, our fate on this planet is still pretty much certain. University of Sussex astrophysicist Dr. Robert Smith says eventually the aging Sun will accelerate global warming to a point where all of Earth's water will simply evaporate.

"Life on Earth will have disappeared long before 7.6 billion years," says Smith, "Scientists have shown that the Sun's slow expansion will cause the temperature at the surface of the Earth to rise. Oceans will evaporate, and the atmosphere will become laden with water vapor, which (like carbon dioxide) is a very effective greenhouse gas. Eventually, the oceans will boil dry and the water vapor will escape into space. In a billion years from now the Earth will be a very hot, dry and uninhabitable ball."

Finally, between the next thousand years or so that Hawking says it will take man to make the planet uninhabitable and the billion years it will take for the sun to turn our planet into an arid wasteland, there is always the chance that a nearby supernova, an asteroid, or aquick and painless black hole could do us in. 

Takeaway One way or another, the life on Earth will likely become uninhabitable for mankind in the future. We need to start seriously thinking about how we will free ourselves from the constraints of this dying planet.

Why We Should Reject This Idea

Despite what Hawking describes as humankind's "selfish and aggressive instinct," there may be some biological impediments to finding another planet to inhabit. 

"The nearest star [to Earth] is Proxima Centauri which is 4.2 light years away," saysUniversity of Michigan astrophysicist Katherine Freese, "That means that, if you were traveling at the speed of light the whole time, it would take 4.2 years to get there."

Unfortunately, at the moment we can only travel at about ten thousandth of light speed, which means if man were to use chemical fuel rockets similar to the those used during the Apollo mission to the moon, the journey would take about 50,000 years. Without the use of a science-fiction-like warp drive or cryogenic freezing technology, no human would live long enough to survive the journey. In addition, "the radiation you would encounter alone would kill you, even if you could get a rocket to go anywhere near that fast," says Freese. 

On the upside, if man ever develops the technology to travel at the speed of light while remaining shielded from cosmic radiation, he could effectively travel into the future. "A five year trip at light speed could push an astronaut forward by 1000 earth years," says Freese, "If he wanted to see if any humans were still around by then."

--
Best Regards

Manish

Earn money by clicking ads...

http://www.clixsense.com/?2796205

RIGHT EFFORT

A giant ship engine failed. The ship's owners tried one expert after another, but none of them could figure but how to fix the engine.  Then they brought in an old man who had been fixing ships since he was a young. He carried a large bag of tools with him, and when he arrived, he immediately went to work. He inspected the engine very carefully, top to bottom.   Two of the ship's owners were there, watching this man, hoping he would know what to do. After looking things over, the old man reached into his bag and pulled out a small hammer. He gently tapped something. Instantly, the engine lurched into life. He carefully put his hammer away. The engine was fixed!  A week later, the owners received a bill from the old man for ten thousand dollars.  "What?!" the owners exclaimed. "He hardly did anything!"  So they wrote the old man a note saying, "Please send us an itemized bill."  The man sent a bill that read:  Tapping with a hammer...... .......... ........ $ 2.00  Knowing where to tap........... ......... ...... $ 9, 998.00  Effort is important, but knowing where to make an effort makes all the difference!

LAWYERS Vs INSURANCE

A TRUE STORY..

                                                                                      
 This is the best lawyer story of the year, decade, and probably the century.                                           
 A Charlotte, NC, lawyer purchased a box of very rare and expensive cigars, and then insured them against fire among    
 other things. Within a month having smoked his entire stockpile of these great cigars and without yet having made even 
 his first premium payment on the policy, the lawyer filed a claim against the insurance company.                       
 In his claim, the lawyer stated the cigars were lost 'in a series of small fires.'                                     
 The insurance company refused to pay, citing the obvious reason: that the man had consumed the cigars in the normal    
 fashion. The lawyer sued and won!                                                                                      
 In delivering the ruling, the judge agreed with the insurance company that the claim was frivolous. The Judge stated,  
 nevertheless, that the lawyer held a policy from the company in which it had warranted that the cigars were insurable  
 and also guaranteed that it would insure them against fire, without defining what is considered to be unacceptable     
 fire, and was obligated to pay the claim. Rather than endure lengthy and costly appeal process, the insurance company  
 accepted the ruling and paid $15,000 to the lawyer for his loss of the rare cigars lost in the 'fires.'                
 NOW FOR THE BEST PART... After the lawyer cashed the check, the insurance company had him arrested on 24 counts of     
 ARSON!!!!                                                                                                              
 With his own insurance claim and testimony from the previous case being used against him, the lawyer was convicted of  
 intentionally burning his insured property and was sentenced to 24 months in jail and a $24,000 fine.                  
 This is a true story and was the 1st place winner in the recent Criminal Lawyers Award Contest.                       

Rag to Riches

A rags to riches story

Wednesday, November 05, 2008

Bangalore: From the humble environs of the village in which they were born to the sophisticated corporate world, successfully breaking the shackles of poverty that ruined the mirth of their boyhood, the two brothers - Kumar Srinivasan as the General Manager, Vice President of Technology and Head of Amazon Bangalore Center and Kalyan Raman as the CEO of Global Scholar - today reign the corporate world. The Cost of Being Poor On Diwali morning in 1987 Kumar Srinivasan woke up just as he did every day. His biggest Diwali gift was waiting for him. "My brother gave me Rs. 10 and he was budgeting this for the last 3 months," recalls Kumar.  With no breakfast, he used to walk 10-12 kms everyday to go to school. Luckily for him, the then Chief Minister of Tamil Nadu M.G. Ramachandran had introduced Midday Meal Scheme for school children in the state. "That's why my mom always voted for MGR's party," quips Kumar. While he looked forward to the much-needed meal-sambar bath with a few pieces of carrot and tomato, Kumar would stay back after all students had left to wash the vessels. This would earn him an extra plate of meal, which he promptly packed and brought home. Sometime he would give it to his younger brother in whose school the scheme was yet to be introduced, and sometimes the morsel of food would be lunch for his sister next day. His childhood memories still bear the imprints of a household bonded by the pressures of poverty. Kumar's family lived in such abject poverty that they reached a point when they had nothing left in the house that could be sold to meet the next day's expenses. It was then that his mother decided to sell the only ceiling fan left in the house. Selling the fan would buy them food for another one full week. "The situation was so miserable that I remember my mother selling our stainless steel plates, in which we would eat, for 50 paise," narrates Kumar. "I still remember passing down the clothes to my younger brothers. The trousers that the youngest one used to wear to go to school had more white patches on it than its original blue color because of the stitches," nostalgically says Kumar's elder brother Kalyan Raman (Kal). His energy and passion are very obvious in his words. And it is this energy and passion that were a common trait amongst all the siblings. He says, "We never felt we were poor. Even though we weren't all that happy, we were peaceful because we always lived on hope. The beauty of hope is that when you have nothing else left to lean upon, you get used to be peaceful. You wait for miracles to happen. Waiting for miracles helps remain hopeful," says Kal. Their mother made a bold call early on saying, "I want every kid to be educated to the best of their abilities. Nobody is going to discontinue education and take a job for a short term gain. If we have to suffer for a few years, so be it." Many of their relatives thought otherwise. They saw no need for all the kids to go to school. Her stubbornness to send children to school only meant that relatives would stop helping. It didn't matter much to her.  Later on in life, Kal steps into Anna University. Best students from elite schools across the state used to come there to study, and here was a kid from the village trying to compete with them. "It was not daunting, but it was exciting to me," says Kal. However, it was not a happy sign to see his classmates coming to college on bicycles, bikes, or cars. Some were wearing double bull shirts and the latest branded jeans or shoes out in the market. Kal couldn't get the money to buy or do whatever he wanted. "I struggled," he notes.  While he was in Anna University, like other hostel students, he would need money for his basic expenses. A postman would come to the hostel block during lunch break, sit in a prominent place and read out names of students who had received money orders from their parents. "Senthil...Rs 500; Arasu...Rs 200; Chandra...Rs 1,000; Selvam; and so on." The students would walk up, collect the money, and tip the postman with Rs 5 or 10, as they pleased. The postman would never ever call out 'Kalyan Raman'. After the roll call, as the happy students dispersed, the postman would silently walk up to Kal and handover the Rs. 2.50 money order his mother would have sent with love. "Receiving such a meager amount would look bad for an engineering student. The postman was so thoughtful that he would not call my name as it would hurt my self respect. Even if I offered 25 paise as a friendly tip he would not accept it," recalls Kal. The thoughtful postman would only pat on his back and say, "Kalyan, study well." But the money order his mother sent him reminded Kal of a number of things and kindled his spirits, and perhaps was one of the main reasons behind what Kal has achieved today. With almost zero money, Kal became the biggest defaulter for not paying the mess fees. The cook in the kitchen had learnt about Kal's poor condition. He would say, "I know I am not supposed to give you food but come after everyone is done with." There were several days when Kal had no food to eat. He would be eagerly waiting to grab food when day scholars at college offered him a portion of the food that they had brought from home. "It was a survival game," says Kal. Kal is today the CEO of GlobalScholar.com, which offers an online tutoring platform, where parents and students can safely connect with trusted educators who provide one-on-one tutoring, homework help, or self-paced learning.  Kumar Follows Kal Meanwhile Kumar completed his B.Sc. in Physics, and on his brother's advice he landed in Chennai and joined SSI for Diploma in Computers. He then went to the U.S. to join his brother. He is currently is the General Manager and Vice President responsible for a business unit, while being the head of the India center. However, Kumar doesn't agree to the fact that he has achieved a lot in a short span of 10 years of his professional life. "Go, look at the Facebook CEO, he is just 23. I am 13 years behind already. Everyday I think I am very much behind and need to catch up with the rest of the world," he says. In Kumar's spirit and daring attitude to perform you cannot fail to see a mirror image of Kal. Kal remarks, as he narrates couplets in Tamil: Kodithu Kodithy Varumai Kodithu Athaninum Kodithu Illamayil Varumai. It says: Poverty is very cruel; more cruel is the poverty in youth. "Poverty and richness can either be a catalyst or could be a burden to get better. It all depends on the mindset. It has everything to do with the fire in the belly or having the wings of fire. There are examples of people getting repressed and depressed by poverty and unable to get anywhere. Willing to do whatever it takes and wanting to prove a point, wanting to make a difference, wanting to be known for something that's what differentiates. Poverty just pushes the goals farther and makes the struggle to achieve interesting, from the view point of others. It creates its own challenges. I don't think, it either hurts or helps if the person doesn't have that fire within him." When Kal's dad passed away, he used to tell his mother, "Don't worry mother. Some day we (children) will make so much of money that you wouldn't even know what to do with." She did believe in his words. "Neither of us had any clue as to how it will come to pass," quips Kal. And he definitely kept his promise. To read the full story, please check http://www.thesmarttechie.com/magazine/fullstory.php/WIOB985704495

Bankruptcy

Once there was a little island country. The "land" of this country was the tiny island itself.

The total money in circulation was 2 dollars as there were only two pieces of 1 dollar coins circulating around.

1) There were 3 citizens living on this island country.

A owned the land.

B and C each owned 1 dollar.

2) B decided to purchase the land from A for 1 dollar.

So, now A and C own 1 dollar each while B owned a piece of land that is worth 1 dollar.

* The net asset of the country now = 3 dollars.

3) Now C thought that since there is only one piece of land in the country, and land is non producible asset, its value must definitely go up. So, he borrowed 1 dollar from A, and together with his own 1 dollar, he bought the land from B for 2 dollars.

*A has a loan to C of 1 dollar, so his net asset is 1 dollar.

* B sold his land and got 2 dollars, so his net asset is 2 dollars.

* C owned the piece of land worth 2 dollars but with his 1 dollar debt to A, his net residual asset is 1 dollar.

* Thus, the net asset of the country = 4 dollars.

4) A saw that the land he once owned has risen in value. He regretted having sold it. Luckily, he has a 1 dollar loan to C. He then borrowed 2 dollars from B and acquired the land back from C for 3 dollars. The payment is by 2 dollars cash (which he borrowed) and cancellation of the 1 dollar loan to C.
As a result, A now owned a piece of land that is worth 3 dollars. But since he owed B 2 dollars, his net asset is 1 dollar.

* B loaned 2 dollars to A. So his net asset is 2 dollars.

* C now has the 2 coins. His net asset is also 2 dollars.

* The net asset of the country = 5 dollars.

 

A bubble is building up.

(5) B saw that the value of land kept rising. He also wanted to own the land. So he bought the land from A for 4 dollars. The payment is by borrowing 2 dollars from C, and cancellation of his 2 dollars loan to A.

* As a result, A has got his debt cleared and he got the 2 coins. His net asset is 2 dollars.

* B owned a piece of land that is worth 4 dollars, but since he has a debt of 2 dollars with C, his net Asset is 2 dollars.

* C loaned 2 dollars to B, so his net asset is 2 dollars.

* The net asset of the country = 6 dollars; even though, the country has only one piece of land and 2 Dollars in circulation.

(6) Everybody has made money and everybody felt happy and prosperous.

(7) One day an evil wind blew, and an evil thought came to C's mind.

'Hey, what if the land price stop going up, how could B repay my loan. There is only 2 dollars in circulation, and, I think after all the land that B owns is worth at most only 1 dollar, and no more.'

(8) A also thought the same way.

(9) Nobody wanted to buy land anymore.

* So, in the end, A owns the 2 dollar coins, his net asset is 2 dollars.

* B owed C 2 dollars and the land he owned which he thought worth 4 dollars is now 1 dollar. So his net asset is only 1 dollar.

* C has a loan of 2 dollars to B. But it is a bad debt. Although his net asset is still 2 dollars, his Heart is palpitating.

* The net asset of the country = 3 dollars again.

(10) So, who has stolen the 3 dollars from the country ? Of course, before the bubble burst B thought his land was worth 4 dollars. Actually, right before the collapse, the net asset of the country was 6 dollars on paper.
B's net asset is still 2 dollars, his heart is palpitating.

(11) B had no choice but to declare bankruptcy. C as to relinquish his 2 dollars bad debt to B, but in return he acquired the land which is worth 1 dollar now.

* A owns the 2 coins, his net asset is 2 dollars.

* B is bankrupt, his net asset is 0 dollar. ( he lost everything )

* C got no choice but end up with a land worth only 1 dollar

* The net asset of the country = 3 dollars.

************ **End of the story; BUT ************ ********* ******

There is however a redistribution of wealth.

A is the winner, B is the loser, C is lucky that he is spared.

A few points worth noting -

(1) When a bubble is building up, the debt of individuals to one another in a country is also building up.

(2) This story of the island is a closed system whereby there is no other country and hence no foreign debt. The worth of the asset can only be calculated using the island's own currency. Hence, there is no net loss.

(3) An over-damped system is assumed when the bubble burst, meaning the land's value did not go down to below 1 dollar.

(4) When the bubble burst, the fellow with cash is the winner. The fellows having the land or extending loan to others are the losers. The asset could shrink or in worst case, they go bankrupt.

(5) If there is another citizen D either holding a dollar or another piece of land but refrains from taking part in the game,  he will neither win nor lose. But he will see the value of his money or land go up and down like a see saw.

(6) When the bubble was in the growing phase, everybody made money.

(7) If you are smart and know that you are living in a growing bubble, it is worthwhile to borrow money (like A) and take part in the game. But you must know when you should change everything back to cash.

(8) As in the case of land, the above phenomenon applies to stocks as well.

(9) The actual worth of land or stocks depend largely on psychology

Letter to Buffet by Lehman

From the desk of Richard Fuld, Lehman

September 18, 2008

Dear Mr. Buffett: 

First off, I would like to thank you for meeting with me and my Lehman Brothers team earlier this week. The opportunity to outline our plan to you personally was the highlight of my professional career. I know that it has been a few years since you had an office in Manhattan, and we aren’t asking you to take a chair and a desk, but your steady hand at Salomon Brothers is an example of what all of us on Wall Street are so desperately seeking in these difficult times.

 As I clearly outlined during our meeting, I firmly believe that an investment in Lehman Brothers by Berkshire Hathaway is a classic opportunity for your great company to, once again, buy a fabulous global franchise at a very fair price. This isn’t at all like the situation that John Gutfreund put you in, and I recognize that you are wary given your previous experience. Wall Street has changed dramatically since 1991, it is far more of a franchise business that relies on capital than the “people” business that you were once used to. As you mentioned, the $700 million Salomon deal was the single largest commitment of your career at that point; and I take your point that such sums are now just the bonus pool for the commodity division

 But much has changed. Over the past year, our firm’s market capitalization has shrunk by more than $30 billion (about 75%). All of the shareholder wealth that we’ve created over the past 10 years has been completely erased in a matter of months, and yet our firm has never had brighter opportunities nor a stronger safety net. This is the investment opportunity that we see for you and the rest of the Berkshire family. You have the opportunity to invest in the brokerage industry at prices not seen for a decade.

 Our firm is poised to return to greatness, and many of Bear”s clients are coming our way.

 Just the other day, a survey of U.S. institutional investors by Greenwich Associates found that “among the largest players, [Lehman and JP Morgan] scored highest in providing their [fixed ncome] clients the best support and understanding during the market turmoil.” This survey, conducted between February and April, also found that while JPMorgan was found to have slightly more institutional trading relationships, Lehman Brothers had slightly more market share.

 What this survey will confirm for you is that our trading desk has continued to serve our many international clients, even when other brokerage firms were pulling back. This bodes well for the next Bull Market.

 I have spoken to both the Treasury Secretary and Chairman Bernanke, and they are prepared to assure you personally that Lehman will continue to have access to the Fed’s discount window for many years to come, if so required. As such, our firm cannot fail in the traditional sense. The federal government’s balance sheet is impregnable. This is an investment circumstance that rarely presents itself in the lifetime of any investor; even one as successful as your own. 

We are very reluctant to raise capital at this juncture. Our recent $6 billion equity raise was intended to help us weather even the worst storm. I understand that some intermediaries reached out to you at that time, and that you rightly advised that your modus operandi was not to invest in a club format. I regret that anyone troubled you with the idea back in May, and recognize that by passing then, as you said in our meeting, you avoided suffering the 44% drop in our shares since that deal was announced on June 10th.

 Your wisdom is clear. But this time it will be different.

 As we discussed, approximately $145 billion of long-term debt is outstanding including current year maturities of $18.5 billion with $8 billion of commercial paper. We have a plan to deal with these debt tranches, but recognize that a partnership with you would be a tremendous asset when we return to the debt markets. My Treasury team advises that we could save in excess of 200 basis points on our medium term paper if Berkshire agreed to be our strategc investor prior to commencing our current year debt refinancing activities.

 The investors who joined our shareholder group in June recognize that much of what has happened over the past 5 weeks was unforseen. But no one likes losses, paper or otherwise. That being said, they will be elated if you join their ranks, let me assure you of that. That old saying, “dilution is your friend”, rings all the more true when the name “Buffett” is involved in the dilution.   

My partners and I are prepared to consider a $5 billion convertible preferred investment, paying an 8% annual cash yield, with redemption and retraction rights in, say, 20 years. Our stock rallied yesterday on the back of the positive news out of Wells Fargo. But, with a sensible discount to yesterday’s closing price of $16.65, your firm would own approximately 33% of our Company, at closing. Naturally, we would very much want you to consider joining our Board of Directors at the earliest opportunity. Other names would be welcome as well.

 As we both know, an announcement that Berkshire had agreed to invest capital in our firm would propel both LEH shares and the broader bank index. If yesterday’s rally is any indication, you could earn a 25% return in a single day merely on the news of your financial commitment to me and our franchise.

 I appreciate that you have been displeased with the role that you believe Wall Street has directly played in the credit crisis of the past 12 months. I noted that, during our meeting, you specifically named Lehman and Bear Stearns as two of the financial institutions that were at the forefront of the growth in the CDO, CLO, ABS, subprime and credit swap markets.

 As you know, the job of an investment bank is to bring to market the products that the market wants to buy. Although we pride ourselves in our Top 5 ranking in the M&A tables, the fees generated on advisory assignments pale in comparison to the revenue that flows from the underwriting side of our industry, whether it be equity, structured products or debt. I took your point that Wall Street must play a “quality control” role in the process of selling products to our clients, and I strongly believe that we did our utmost on that front.

 We were so convinced that these vehicles were money machines that we bought them for the  ccounts of our own captive hedge funds. We put our money where our mouths were.

 I understand that you are also dubious about the long term capability of the hedge fund industry to produce returns that exceed your sense of market norms. I have two points to make on that front.

 Hedge Funds are a key revenue driver on our trading desks, and excellent Prime Brokerage clients as well. Up to 40% of our daily block trades are done for hedge fund clients. Moreover, our ability to create our own hedge funds has generated substantial fees from institutional investors and pension funds around the world. Although the recent SEC push to curtail some of the more attractive trading strategies of hedge funds such as ours may hamper our ability to beat the index, the fee streams that our funds generate are extremely valuable. Particularly at times, such as now, when the underwriting and advisory revenues are weaker than we would like.

 However, if you would like a commitment from me to exit the hedge fund business, I will certainly recommend such action to the Board should you agree to our investment proposal. Although I am the leader at Lehman, I am always open to well-reasoned perspectives.

 In summary, let me again thank you for agreeing to meet with us. I believe that you’ve been presented with a unique investment opportunity, and one that is sure to be successful. Your hallmark is to invest in top notch management teams, and I humbly submit that we’ve demonstrated that we can navigate difficult waters.

 With your financial commitment to our firm, the sailing will be smooth, and the entire U.S. financial services industry will benefit from the rising tide that would surely follow a commitment from Berkshire. The positive impact that would have on the economy is clear, which would directly beenfit the rest of the Berkshire Hathaway portfolio of companies. This is the way that America can exit therecession that you believe we are experiencing right now.

 Thank you, in advance, for your time and consideration. As Senator McCain said himself, and I passed along to you, “the country needs you”, and we are honoured that you are considering this opportunity.

 Yours Sincerely,

 “signed”

 Richard Fuld,

Chairman and CEO

Lehman Brothers Inc.