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Author Topic: ' “Turbo Tim” get caught screwing the tax payers?…..again? '  (Read 1534 times)
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WhiskeyGirl
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« on: March 14, 2010, 11:23:26 AM »

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A new report is out by the bank examiner hired by Lehman Brothers to assess the reasons for the financial company’s collapse and the final product is not pretty.

The New York Times reports:

   
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“But the examiner, Anton R. Valukas, also for the first time, laid out what the report characterized as “materially misleading” accounting gimmicks that Lehman used to mask the perilous state of its finances. The bank’s bankruptcy, the largest in American history, shook the financial world. Fears that other banks might topple in a cascade of failures eventually led Washington to arrange a sweeping rescue for the nation’s financial system.

    According to the report, Lehman used what amounted to financial engineering to temporarily shuffle $50 billion of troubled assets off its books in the months before its collapse in September 2008 to conceal its dependence on leverage, or borrowed money. Senior Lehman executives, as well as the bank’s accountants at Ernst & Young, were aware of the moves, according to Mr. Valukas, the chairman of the law firm Jenner & Block and a former federal prosecutor, who filed the report in connection with Lehman’s bankruptcy case.”

There’s another angle that the New York Times chose not to cover.  Naked Capitalism notes that the NY Fed during the ‘financial misbehavior’ was being run by current Treasury Secretary Timothy Geithner:

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    “It also emerges that the NY Fed, and thus Timothy Geithner, were at a minimum massively derelict in the performance of their duties, and may well be culpable in aiding and abetting Lehman in accounting fraud and Sarbox violations.

    We need to demand an immediate release of the e-mails, phone records, and meeting notes from the NY Fed and key Lehman principals regarding the NY Fed’s review of Lehman’s solvency. If, as things appear now, Lehman was allowed by the Fed’s inaction to remain in business, when the Fed should have insisted on a wind-down (and the failed Barclay’s said this was not infeasible: even an orderly bankruptcy would have been preferrable, as Harvey Miller, who handled the Lehman BK filing has made clear; a good bank/bad bank structure, with a Fed backstop of the bad bank, would have been an option if the Fed’s justification for inaction was systemic risk), the NY Fed at a minimum helped perpetuate a fraud on investors and counterparties.”

Read more: http://dailycaller.com/2010/03/12/lehman-brothers-hid-borrowing-geithner-may-bear-some-responsibility/

From the comments -

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hurtzallot

“Turbo Tim” get caught screwing the tax payers?…..again?

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debs

Mr. Geithner cannot keep his own finances straight so as to file his own taxes correctly. How on earth would he be able to discern a problem with a big organization like Lehman? He’s incompetent and a tax cheat. Like his boss Prez Obama, he obviously has no respect for the law other then to twist it for his own corrupt purposes. To the likes of Tim Geithner corruption is the fashion. He needs to go and so does Prez Obama. The Obama administration is totally corrupt from top to the bottom. No Obama 2012.
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WhiskeyGirl
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« Reply #1 on: March 14, 2010, 11:48:52 AM »

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Stephen Foley: Vast and dangerous CDS market threatens new financial panics

Saturday, 13 March 2010
 

US Outlook: You don't know me; we've never met. But how would you feel if I told you I had taken out a life insurance policy on your life? Would you feel a little nervous? Don't worry, I haven't actually done it. (I wouldn't know where to hire an assassin either, by the way.) In fact, taking out insurance on other people's lives is a practice that is banned, for obvious reasons.

You will be unsurprised to learn that the same commonsense principle does not exist in financial markets. And if this week's speech by the derivatives market's chief regulator, Gary Gensler of the CFTC, is anything to go by, it isn't likely to be applied where it is most urgently needed, namely in the $25 trillion market for credit default swaps.

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Mr Gensler seems comfortable with the current proposals to corral the trading of CDS on to regulated exchanges. He's still talking the Wall Street language of "transparency" and "liquidity". George Soros, speculator extraordinaire, is a better voice on this subject. He wants a ban on CDS use by anyone that doesn't have an underlying bond exposure to insure. That's common sense.

What is the worst thing that would happen if there were no derivatives and CDS's?

Are these things safe in anyone's hands? 

more here - http://www.independent.co.uk/news/business/comment/stephen-foley-vast-and-dangerous-cds-market-threatens-new-financial-panics-1920757.html
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All my posts are just my humble opinions.  Please take with a grain of salt.  Smile

It doesn't do any good to hate anyone,
they'll end up in your family anyway...
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