Here’s the background on this escalating story of greed, lying, and cover-ups.
The bankruptcy examiner for the Lehman Brothers bankruptcy says then-CEO Dick Fuld “was “at least grossly negligent” for letting Lehman file financial reports in which a key gauge of strength was ‘reverse-engineered’ through transactions known as Repo 105s” Further “Lehman auditor Ernst & Young LLP could be accused of ‘professional malpractice'” he said.
If Fuld has not yet left the country, doing so ASAP may be a very good idea
Lets simplify – Lehman was pledging as collateral “assets” whose explicit worth was contingent on Lehman’s viability! Surely someone at Lehman brothers must have known about this. And the fact that they were so brazen as to suggest something that, as JPM rightfully concluded, was worthless in a catch 22 valuation, highlights the level of criminality and stupidity that serves at the backbone of what people assume is a sound and credible $3 trillion + shadow economy.
There used to be a thing about lying in public regulatory filings. We don’t remember when the rule was phased out precisely, or when the SEC said that all its enforcement officers (roughly 2 of them) are going on a lifelong vacation to eunuch country, allowing the market to self-regulate, but we distinctly recall that lying to one’s investors was marginally frowned upon courtesy of the Exchange Acts of 1933/34 (no, not the Gold confiscation act), even before the advent of Tiny Tim to the Throne Treasury And Tax Trickery.
The system is quite corrupt, isn’t it? Everyone, including the federal government and Obama is deliberately lying to us on a continuing basis.