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Posts Tagged ‘SEC oversight of Lehman’

Did Hudson Castle Facilitate Fraud at Lehman?

Posted by Larry Doyle on April 13th, 2010 1:33 PM |

Perpetrating a fraud is never as easy as it may appear. Although in hindsight frauds may appear to be simplistic, there are typically many more moving parts than meets the eye. To this end, the idea that Bernie Madoff perpetrated his massive Ponzi scheme by himself or with merely a few associates is beyond ridiculous. Just as Madoff had outside feeder funds and brokers that provided cover for him, today it appears that the once proud and venerable firm of Lehman Brothers also had an outside firm which enabled it to ‘manage its books.’ Who is this firm? An outfit known as Hudson Castle. Who is Hudson Castle and what was the nature of its relationship with Lehman? Let’s navigate. (more…)

SEC Oversight of Lehman, or Ignorance is Not Bliss

Posted by Larry Doyle on April 1st, 2010 9:42 AM |

Ignorance is never an excuse. Whether in regard to law enforcement, financial regulation, or other forms of supervisory oversight, ignorance may be the reality . . . but we can never allow it to be used as an excuse. Regrettably, ignorance (if not worse) was clearly on rampant display as the SEC (and in my opinion, FINRA as well) failed America miserably in its oversight of Lehman Brothers.

One of my favorite financial journalists, Bloomberg’s Jonathan Weil, highlights the pathetic performance of the SEC regulators who were charged with overseeing one of the firms that catapulted our economy off a cliff. Weil writes, Wall Street’s Repo 105 Cops Wake Up From Dead:

The good news this week from the Securities and Exchange Commission is that it’s on the hunt for companies that have used Lehman-style accounting tricks to make themselves look less leveraged than they really are. Now for the downside: The headline-chasing agency is way too late, as usual. (more…)

Bloomberg’s Susan Antilla Exposes Lehman’s Charade

Posted by Larry Doyle on March 15th, 2010 10:54 PM |

Journalism is not dead.

I find it easy to critique financial journalists and journalism these days for not digging to expose the charades within the Wall Street-Washington incestuous liaisons; however, a few journalists are not beholden to the financial industry, do dig, and truly distinguish themselves in the process. The two finest journalists in this realm both happen to work at Bloomberg. One is Jonathan Weil. The other is Susan Antilla.

While many journalists have written about the finer points of repo financing and how Lehman cooked their books, Susan Antilla took the time to delve deeper into Anton Valukas’ expose on the inner workings of Lehman. (more…)

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