Richard Fuld, CEO of Lehman Brothers, is liquidating part of his art holdings. And he's doing it in a very investment-banker way.

Sarah Thornton author of the new book Seven Days in the Art World tells Morning Edition that Fuld's wife arranged to put a collection of 16 drawings up for auction, including at least one work by Willem de Koonig.

"The Fuld's negotiated a guarantee in July of in the region of - rumor has it - of $20 million" she says, meaning that even if none of the drawings sell, the Fuld's still get that minimum amount.

In the financial world, that would be called a put option.

Thornton says Francis Bacon's paintings of popes are very popular with the billionaires these days. She says they seem to sum up what it must feel like to be a hedge fund manager today.

categories: Economic Scene

8:47 - November 11, 2008

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