Comments on: Report escalates Lehman ineptitude to new level http://blogs.reuters.com/breakingviews/2010/03/12/report-escalates-lehman-ineptitude-to-new-level/ Mon, 26 Sep 2016 03:26:00 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: jfz50 http://blogs.reuters.com/breakingviews/2010/03/12/report-escalates-lehman-ineptitude-to-new-level/comment-page-1/#comment-1939 Mon, 15 Mar 2010 20:20:04 +0000 http://blogs.reuters.com/columns/?p=2634#comment-1939 “Mar 12, 2010
9:31 pm ESTIt’s not fraud because they didn’t steal any money. They sold something to someone else, then bought it back at a loss. There’s nothing illegal about it.”
-So you are saying that if you invested $100,000 with my investment firm and I used it to buy shares in another company and I turned around and sold them for $25,000, that there is nothing wrong with that? Do I have a great deal for you!

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By: HBC http://blogs.reuters.com/breakingviews/2010/03/12/report-escalates-lehman-ineptitude-to-new-level/comment-page-1/#comment-1931 Mon, 15 Mar 2010 17:14:27 +0000 http://blogs.reuters.com/columns/?p=2634#comment-1931 Please don’t trivialize the severity of what’s at issue here by calling it ineptitude. Ineptitude is somebody not knowing what the heck they’re doing.

The Lehman situation’s in an entirely different category, properly referred to as serial felony accounting fraud, to an extent impossible without the complicity of major “bipartisan” insiders at the New York Fed.

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By: breezinthru http://blogs.reuters.com/breakingviews/2010/03/12/report-escalates-lehman-ineptitude-to-new-level/comment-page-1/#comment-1925 Mon, 15 Mar 2010 15:51:11 +0000 http://blogs.reuters.com/columns/?p=2634#comment-1925 Corporations are certainly not inept at fleecing investors.

What they are doing is a crime. Call it a crime. Prosecute the bastards and punish them in a very painful and memorable way.

If our financial system does any less than that, we are tacitly approving of their behavior.

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By: doctorjay317 http://blogs.reuters.com/breakingviews/2010/03/12/report-escalates-lehman-ineptitude-to-new-level/comment-page-1/#comment-1919 Mon, 15 Mar 2010 02:59:25 +0000 http://blogs.reuters.com/columns/?p=2634#comment-1919 “It’s the best document yet from this crisis on how to prevent future failures. It should be mandatory reading for current and would-be bank chiefs — and their regulators.” Well, if the biggest financial system on the planet had such dumb rules that allow so much flexibility for false reporting, how are the regulators going to regulate? Lehman has been doing this since 2001?
Gimme a break!!!

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By: The1eyedman http://blogs.reuters.com/breakingviews/2010/03/12/report-escalates-lehman-ineptitude-to-new-level/comment-page-1/#comment-1918 Mon, 15 Mar 2010 01:09:55 +0000 http://blogs.reuters.com/columns/?p=2634#comment-1918 It what way are they considered inept? :-)

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By: HiHo http://blogs.reuters.com/breakingviews/2010/03/12/report-escalates-lehman-ineptitude-to-new-level/comment-page-1/#comment-1915 Sat, 13 Mar 2010 15:07:19 +0000 http://blogs.reuters.com/columns/?p=2634#comment-1915 How come big companies with aid of their auditors can get away with such massive FRAUD. They should be held liable for their actions like anybody else. Come on E & Y are you only interested in your audit fees, where does your loyalty lie.

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By: igiveup http://blogs.reuters.com/breakingviews/2010/03/12/report-escalates-lehman-ineptitude-to-new-level/comment-page-1/#comment-1914 Sat, 13 Mar 2010 05:21:55 +0000 http://blogs.reuters.com/columns/?p=2634#comment-1914 How many large investment banks would look good with their kimonos wide open like Lehman’s? There, but for the grace of God…

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By: Jarlent http://blogs.reuters.com/breakingviews/2010/03/12/report-escalates-lehman-ineptitude-to-new-level/comment-page-1/#comment-1910 Fri, 12 Mar 2010 20:31:07 +0000 http://blogs.reuters.com/columns/?p=2634#comment-1910 It’s not fraud because they didn’t steal any money. They sold something to someone else, then bought it back at a loss. There’s nothing illegal about it.

The questionable part comes because they were only selling it to get rid of it when the reports were done. They used accounting gimmicks to turn a normal transaction into something tricky.

They have names for those crimes and it’s things like “breach of fiduciary duty”.

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By: ExtremeCentrist http://blogs.reuters.com/breakingviews/2010/03/12/report-escalates-lehman-ineptitude-to-new-level/comment-page-1/#comment-1909 Fri, 12 Mar 2010 20:10:47 +0000 http://blogs.reuters.com/columns/?p=2634#comment-1909 After the last set of enormous financial scandals, the U.S. implemented Sarbanes-Oxley. I certainly hope that, as the evidence is fully collected, that those responsible for this enormous fraud will be prosecuted.

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By: toneloco64 http://blogs.reuters.com/breakingviews/2010/03/12/report-escalates-lehman-ineptitude-to-new-level/comment-page-1/#comment-1907 Fri, 12 Mar 2010 18:58:58 +0000 http://blogs.reuters.com/columns/?p=2634#comment-1907 The sad thing is that They’re allowed to call this “accounting gimmickry” because some of these accounting principles, such as claiming “agreements” as “sold” and write it as revenue.

“Even if Repo 105 wasn’t lethal it was certainly poisonous. Lehman had been abusing it as far back as 2001, using repurchase agreements to finance assets but, unlike with typical repo transactions, treating them for accounting purposes as sold.”

Enron used a similar accounting practice, where they would claim future tender agreements as revenue. It’s a shame that these practices aren’t completely outlawed. MORE TRANSPARENCY IN THE WHITE HOUSE! MORE TRANSPARENCY ON WALL STREET!

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