Monday, April 23, 2012

Lehman Brothers Collapse on 60 Minutes April 22, 2012

Link to 60 Minutes feature on Lehman Brothers collapse broadcast Sunday April 22, 2012.;cbs
Counsel Anton Valukas was appointed by the US Bankruptcy Court to determine what happened at Lehman.
Steve Kroft: How closely was the SEC monitoring Lehman Brothers during this [2008] period?
Anton Valukas: They were on premises. They were talking to the Lehman people daily. They had offices there.
SK: During the last six months of Lehman's existence teams of officials from the SEC and the federal Reserve took up residence inside the firm.
Fuld may use the presence of SEC, Federal Reserve on premises as his defense. Using a technique called Repo 105 Lehman moved $50 billion is debits off their books to English division then moved it back. Chief accountant Lee Matthews refused to sign off on that trick. He wrote a letter to Lehman management and got fired. He is still out of work 4 years later. Richard Fuld claims he did not see the letter or know about Repo 105. The Board of Directors did not know.

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