Posted on 03/13/2010 9:22:52 AM PST by Ernest_at_the_Beach
March 12, 2010, 8:00 pm
The bankruptcy examiner’s report filed by Anton R. Valukas on the 2008 demise of Lehman Brothers discusses some accounting gimmicks that are eerily reminiscent of how Enron tried to prop up its balance sheet back in 2001 before it collapsed.
Both companies appear to have played right along the edge of properly accounting for transactions designed to make them appear much stronger than they turned out to be, becoming steadily more aggressive as they teetered on the brink of ruin.
The examiner’s report discusses potential claims that the bankruptcy trustee can bring against Lehman’s former officers and outside advisers and does not mention potential government law enforcement action. Reading his report, however, gives strong indications that at a minimum the Securities and Exchange Commission is likely to pursue civil charges for securities fraud, and that criminal charges are certainly possible against Lehman’s former top executives.
The examiner’s report gives us a new term for hiding problems on a corporate balance sheet that may become common parlance: “Repo 105.”
(Excerpt) Read more at dealbook.blogs.nytimes.com ...
What did Geithner know and when did he know it?
"...fraud, you probably think there should be rules against it, I think the market will figure it out."--Alan "The Wizard" Greenspan
>>What did Geithner know and when did he know it?
1998
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