Democratic Underground Latest Greatest Lobby Journals Search Options Help Login
Google

SEC: Accounting move masked Lehman's perilous condition

Printer-friendly format Printer-friendly format
Printer-friendly format Email this thread to a friend
Printer-friendly format Bookmark this thread
This topic is archived.
Home » Discuss » Archives » General Discussion (1/22-2007 thru 12/14/2010) Donate to DU
 
defendandprotect Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Apr-20-10 03:09 PM
Original message
SEC: Accounting move masked Lehman's perilous condition
SEC is looking into accounting at 19 biggest banks
By ALAN ZIBEL, AP Business Writer Alan Zibel, Ap Business Writer – 10 mins ago
WASHINGTON – The Securities and Exchange Commission is examining whether any of the 19 largest U.S. banks are using an accounting trick that a bankruptcy examiner has said led to the collapse of Lehman Brothers, SEC Chairman Mary Schapiro said Tuesday.

Schapiro testified at a congressional hearing that the SEC is scrutinizing Lehman's use of the accounting move, known as Repo 105, that allowed it to mask its weakness before it failed.

She said the agency has sent letters to the 19 banks, seeking information about any such transactions.

The hearing is looking into what led to Lehman's meltdown in September 2008. But it also drew lawmakers into a partisan squabble over the Obama administration's push for financial regulatory reform.

Lehman's collapse was the biggest corporate bankruptcy in U.S. history and threw global financial markets into crisis. The hearing probed the bankruptcy examiner's report that said the firm masked $50 billion in debt.

Schapiro said the SEC is examining "the truthfulness of the disclosure" in Lehman's financial filings.

"It's not clear any action by the SEC could have saved Lehman Brothers, but we are determined to use the lessons of that experience to be more effective," Schapiro said. "More vigorous oversight and a
new approach are essential."

http://news.yahoo.com/s/ap/us_sec_meltdown_wall_street
Printer Friendly | Permalink |  | Top
Bozita Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Apr-20-10 03:15 PM
Response to Original message
1. Repo 105 should be renamed Now-You-See-It, Now-You-Don't
Pure magic!
Printer Friendly | Permalink |  | Top
 
Turbineguy Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Apr-20-10 04:11 PM
Response to Original message
2. If they had as much equity, liquidity and low risk
as Fuld says, how come they went bankrupt?

"Hey! You fucked up! You trusted us!"

Printer Friendly | Permalink |  | Top
 
DU AdBot (1000+ posts) Click to send private message to this author Click to view 
this author's profile Click to add 
this author to your buddy list Click to add 
this author to your Ignore list Sat Nov 02nd 2024, 11:01 PM
Response to Original message
Advertisements [?]
 Top

Home » Discuss » Archives » General Discussion (1/22-2007 thru 12/14/2010) Donate to DU

Powered by DCForum+ Version 1.1 Copyright 1997-2002 DCScripts.com
Software has been extensively modified by the DU administrators


Important Notices: By participating on this discussion board, visitors agree to abide by the rules outlined on our Rules page. Messages posted on the Democratic Underground Discussion Forums are the opinions of the individuals who post them, and do not necessarily represent the opinions of Democratic Underground, LLC.

Home  |  Discussion Forums  |  Journals |  Store  |  Donate

About DU  |  Contact Us  |  Privacy Policy

Got a message for Democratic Underground? Click here to send us a message.

© 2001 - 2011 Democratic Underground, LLC