Use access key #2 to skip to page content.

alstry (35.21)

Madoff Was A Midget

Recs

18

March 12, 2010 – Comments (2)

Petters was petit compared to what is about to  face us........

LONDON (MarketWatch) -- An accounting maneuver known as "Repo 105" was a "drug" that helped maintain a veneer of health on Lehman Brothers' crumbling balance sheet in the months running up to its bankruptcy, a report from a court-appointed examiner shows.

The firm began using the Repo 105 as far back as 2001, but its use picked up sharply toward the end of 2007, even in the face of concern from some staff, as banks worldwide came under more and more pressure to cut their leverage.

Responding to an April 2008 email asking if he was familiar with the transaction, Bart McDade, the firm's then-head of equities and subsequently chief operating officer, replied "I am very aware... it is another drug we r on," according to the report by examiner Anton Valukas.

The report, which runs to 2,200 pages, said former top officers including ex-CEO Dick Fuld and Chief Financial Officers Chris O'Meara, Erin Callan and Ian Lowitt could face legal claims for negligence of breach of duty.

Auditor Ernst & Young could also potentially face a professional malpractice claim for not challenging Lehman's non-disclosure of the off-balance sheet transactions, the report said.

ANY SECOND RATE ANAYLYST SHOULD HAVE PICKED THIS UP.....NOW THE QUESTION IS HOW MANY OTHER COMPANIES ARE ENGAGING IN SIMILAR BEHAVIOR??????

2 Comments – Post Your Own

#1) On March 12, 2010 at 9:44 AM, carcassgrinder (35.78) wrote:

probably somewhere between most and all publicly traded companies.

Report this comment
#2) On March 12, 2010 at 1:44 PM, alstry (35.21) wrote:

Clearly many........

When this unravels......it will be incredible.

We are now selling municipal bonds at low rates for cities on the verge of bankruptcy.....the complacency is at unprecedented levels.

How does a nation where the citizens/businesses, and municipalities owe each other $55 trillion dollars function when few can afford to service the debt due to Zombulation???

Report this comment

Featured Broker Partners


Advertisement