EXPLOSIVE: Lehman – Where Are The Cops?

Market Ticker - Karl Denninger View original article March 11, 2010 05:40 PM Sarbanes-Oxley was supposed to prevent crap like this: From the paper: [INDENT] [/INDENT][/SIZE][/SIZE][/FONT]Oh yeah, that's legal?  It's not supposed to be! [INDENT]Lehman regularly increased its use of Repo 105 transactions in the days prior to reporting periods to reduce its publicly reported net leverage and balance sheet.[FONT=PalatinoLinotype-Roman][SIZE=1]2850  [/SIZE][/FONT]Lehman?s periodic reports did not disclose the cash borrowing from the Repo 105 transaction ? i.e., although Lehman had in effect borrowed tens of billions of dollars in these transactions, Lehman did not disclose the known obligation to repay the debt.[FONT=PalatinoLinotype-Roman][SIZE=1]2851  [/SIZE][/FONT]Lehman used the cash from the Repo 105 transaction to pay down other liabilities, thereby reducing both the total liabilities and the total assets reported on its balance sheet and lowering its leverag...