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Posts Tagged ‘Bart McDade’

Dick Fuld Unaware of Lehman’s ‘Cooking the Books’? STOP IT!!

Posted by Larry Doyle on March 13th, 2010 2:34 PM |

Given the global interest in this story, I am bumping it up from the original posting on 3/12/2010.  LD


Former Lehman Bros. CEO, Dick Fuld

Reports that Lehman was effectively ‘cooking its books’ prior to its ultimate demise are not a surprise.

Reports that Dick Fuld, then CEO of Lehman, was not aware of the nature of this cooking are both ridiculous and pathetic.

The lifeblood of every financial institution on Wall Street is access to financing for its operations. That financing very often comes in the form of repurchase agreements (repo financing), in which the institution borrows funds while pledging assets. These short term loans, often overnight loans, are unwound at a preset date and preset prices. The rates borrowers have to pay for funds borrowed depend on the credit quality of the borrower itself and the quality of the assets pledged. (more…)

Brad Hintz Reviews Lehman’s Cooking

Posted by Larry Doyle on March 12th, 2010 12:00 PM |

Brad Hintz is currently an analyst at Sanford C. Bernstein, a division of Alliance Capital Management. In the 1990s, Hintz served as CFO of Lehman Bros.. As such, Hintz is well positioned to comment on the ‘cooking’ that occurred at Lehman in the midst of the economic crisis which led to Lehman’s filing bankruptcy.

How does Hintz define Lehman’s accounting? In a word, “shenanigans.”

Take a look at a brief Bloomberg video clip to get an insider’s view of the Lehman kitchen:

In the spirit of full disclosure, while looking for background material on Mr. Hintz himself, I unearthed the fact that Mr.Hintz was sanctioned by the NASD (now FINRA) for selling his own personal positions in stocks (Lehman and Morgan Stanley) while continuing to recommend them. (more…)

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