{"id":189498,"date":"2010-03-19T20:05:00","date_gmt":"2010-03-20T01:05:00","guid":{"rendered":"https:\/\/www.panix.com\/~msaroff\/40years\/2010\/03\/19\/the-lehman-accounting-fraud-scandal-widens\/"},"modified":"2010-03-19T20:05:00","modified_gmt":"2010-03-20T01:05:00","slug":"the-lehman-accounting-fraud-scandal-widens","status":"publish","type":"post","link":"https:\/\/www.panix.com\/~msaroff\/40years\/2010\/03\/19\/the-lehman-accounting-fraud-scandal-widens\/","title":{"rendered":"The Lehman Accounting Fraud Scandal Widens"},"content":{"rendered":"<p>Because it now appears that <a href=\"http:\/\/www.ft.com\/cms\/s\/0\/d4d734f8-32d6-11df-a767-00144feabdc0.html\">J. P. Morgan  Chase booked repurchase trades as sales as well:<\/a><\/p>\n<blockquote style=\"color: rgb(0, 0, 153);\"><p>JPMorgan Chase recorded some repurchase trades as sales, the same accounting gimmick that spawned Lehman Brothers\u2019 now-infamous \u201cRepo 105s\u201d, suggesting that the failed bank was not alone in its interpretation of a new accounting rule.<\/p>\n<p>Unlike Lehman, which never disclosed the effects of its repo deals on the firm\u2019s balance sheet, JPMorgan detailed the year-end values of its repo sales and purchases in annual reports beginning in 2001, after a new accounting rule was introduced.<\/p>\n<p>The practice ended in 2005 when the company merged with Bank One. \u201cThe transactions were done in very small amounts and were fully disclosed,\u201d a spokesman said.<\/p><\/blockquote>\n<p>Yeah, we believe you.<\/p>\n<p>More seriously, it should be made illegal to engage in activities that have the effect of removing liabilities from the balance sheet a part of their purpose.<\/p>\n<p><a href=\"http:\/\/40yrs.blogspot.com\/search?q=lehman\">Lehman background<\/a>, I recommend the Stewart video.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Because it now appears that J. P. Morgan Chase booked repurchase trades as sales as well: JPMorgan Chase recorded some repurchase trades as sales, the same accounting gimmick that spawned Lehman Brothers\u2019 now-infamous \u201cRepo 105s\u201d, suggesting that the failed bank was not alone in its interpretation of a new accounting rule. Unlike Lehman, which never &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[970,1004],"tags":[],"class_list":["post-189498","post","type-post","status-publish","format-standard","hentry","category-corruption","category-finance"],"_links":{"self":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/189498"}],"collection":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/comments?post=189498"}],"version-history":[{"count":0,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/189498\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/media?parent=189498"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/categories?post=189498"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/tags?post=189498"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}