"It helped that we came from the right families and went to the right schools, " says Chugh, 38, the much more reserved of the pair, who was the head of a fixed-income structuring group at Lehman Brothers (nyse: LEH - news - people ) in New York.

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Trading in shares of Lehman Brothers (nyse: LEH - news - people ) has also been unusually active, with the number of shares sold short at the New York Stock Exchange climbing 21% from mid-March to the end of March, to 56.7 million shares, or 10% of its shares outstanding.

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Elsewhere, Neuberger Berman (nyse: NEU - news - people ) was up almost 2%, after saying Friday it was in talks to be bought by Lehman Brothers (nyse: LEH - news - people ).

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In January, the NYSE received a tip-off from Lehman Brothers (nyse: LEH - news - people ), Gruttadauria's employer, that the broker may have misappropriated client funds.

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CEOs at rivals including Morgan Stanley (nyse: MWD - news - people), Goldman Sachs (nyse: GS - news - people) and Lehman Brothers (nyse: LEH - news - people) also took pay cuts, as Wall Street struggled with falling stock markets in 2001.

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