Thursday, March 11, 2010
WALL STREET GORILLA IN THE SUBPRIME MIST
BANZAI7 NEWS--WSJ reports that a federal judge released a scathing, voluminous report on the collapse of Lehman Brothers Holdings Inc. that singles out senior executives, auditor Ernst & Young and other investment banks for serious lapses that led to the largest bankruptcy in U.S. history and the worst financial crisis since the Great Depression.
U.S. Bankruptcy Judge James Peck unsealed the 2,200 report Thursday, after court-appointed examiner Anton Valukas investigated the events surrounding the downfall of the firm.
As Lehman spiraled toward failure during the course of 2008, its financial plight was "exacerbated" by the investment bank's executives, the report said, noting that their conduct ranged from serious errors of business judgment to "actionable balance sheet manipulation."
WB7: As if we don't have enough to read already...The "actionable balance sheet manipulation" theme is something you have heard about here on many occasions.
Question: What are the rodeo clowns at the SEC gonna do about it.
Answer: They are too busy witch hunting for short sellers and nailing the psychic hedge fund scammer.
No wonder former Lehman CEO Erin Calin is having a ball out in the Hamptons.
The full report (all nine volumes) can be downloaded here. This page turner looks to be a definitive study of just about everything that is wrong with Wall Street. Pleasant reading...Pay close attention to