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Lehman used misleading accouting practices


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I am shocked and appalled that there is gambling in Casablanca. Quick Mr. Volcker round up the usual suspects.

 

I'm surprised there was no stinks caused about Paulson's involvement with Goldman during the crisis.

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The government has been doing the same thing for years. It gave us the ridiculous satisfaction of "we have a surplus!"

 

:rolleyes:

 

I like when the government calls for people to be fired over crap like this...and yet no one in government ever gets fired for their cost overruns, auditing problems, or going to war based on bad information.

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http://ftalphaville.ft.com/blog/2010/03/12/173241/repo-105/

 

In a statement, Mr Fuld’s lawyer wrote: “Mr Fuld did not know what those transactions were – he didn’t structure or negotiate them, nor was he aware of their accounting treatment,” his attorney wrote in a statement.

 

If I recall, CEO has a fiduciary duty to what's signed off. That won't hold up in court.

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... according to the court appointed examiner.

 

http://www.ft.com/cms/s/0/2e412d50-2d6e-11...144feabdc0.html

 

What's the point of using an external auditor if these kind of discrepancies aren't examined?

 

 

And that makes them different from every other financial institution how exactly? Can't trust any balance sheet out there.

 

Accounting rules require that banks write down the value of those loans on their books, and experts tell me that if banks really accounted for all the losses in the home loan market, they'd all be insolvent.

 

http://www.cnbc.com/id/35768105

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And that makes them different from every other financial institution how exactly? Can't trust any balance sheet out there.

 

I agree 100%. There are many manipulations that go on and I wouldn't be surprised if it's recurring with every financial institution.

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