After more than three years of investigating the largest corporate bankruptcy in U.S. history, the Securities and Exchange Commission is reportedly dropping the case against Lehman Brothers.
“The staff has concluded its investigation and determined that charges will likely not be recommended,” reads an internal SEC memo, obtained by Bloomberg.
Gee, go figure. Former bankers investigating bankers. When I was a child, we called this a merry-go-round.
If true, this is ‘a travesty of a mockery of a sham of a mockery of a travesty of two mockeries of a sham,’ to quote Woody Allen’s Bananas.
In 2010, the court appointed examiner for Lehman’s bankruptcy concluded Lehman executives used “materially misleading” accounting gimmicks in the months prior to its September 2008 bankruptcy.
Specifically, Lehman “reverse engineered the firm’s net leverage ratio for public consumption” to the tune of $50 billion, according to Valukas. This refers to the now infamous accounting practice called a Repo 105, whereby Lehman offloaded some of its most toxic assets at the end of the quarter in order to temporarily reduced the leverage it disclosed in quarterly filings....Continue ReadingView Comments (1)