A Wall Street Truthteller?

The NYT on Sandy Lewis:

Mr. Lewis wants to flip over Wall Street’s paving stones and search for worms. He relies on his singular strength: he discerns patterns where most see random data. He forecast the financial meltdown of 2008 that vaporized Bear Stearns, Merrill Lynch and Lehman Brothers. In 2006, he warned a Bear Stearns executive: “Bear is toast. Get out now!”

Lehman Brothers, he notes, certified it was in good health in June 2008 and issued stock, attracting investment, including from the New Jersey Teachers’ Pension and Annuity Fund. Secretly, Lehman was on an intravenous drip, poisoned by bad debt.

“My respect for their brains is too great to think Lehman’s top guys didn’t know they were conveying the cynical impression of health,” Mr. Lewis said.

He is no less suspicious of Goldman Sachs, which has alumni sprinkled across the upper reaches of government. In a tough spot, Goldman obtained extraordinary permission to make an overnight metamorphosis from investment bank to traditional bank holding company.

“Can I prove this was a wired deal? Absolutely not,” Mr. Lewis said. “Am I certain of it? Only 100 percent.”

As for the whirling, three-million-shares-per-second casino of Wall Street? He sees it as rigged. “I would not risk stocks under any circumstances,” he said, “because we don’t know when this thing is going to blow.”

The guy is definitely fascinating.  The story about how he got prosecuted by Rudy Giuliani is amazing.  I would agree with him that there's still another shoe to drop in the economy.