The demise of Lehman Brothers has been recorded in a 2200 page Examiners Report. It is clear from this report that Lehman Brothers carried out fraudulent accounting practices in order to mislead investors and regulators. Lehman's demise played a pivotal role in persuading politicians and finacial analysts that the sky was falling in.
Lehman used something called 'Repo 105' to hide it's parlous financial position. In this clip Dylan Ratigan explains what they were doing:
Theft, lies, fraud.
Compare that with how it was described in Britain. The FT said the repo 105 was a gimmick; the BBC's Robert Peston said it was 'astonishing' and this morning's Today programme used words like 'amazing', 'silly' and 'irresponsible'.
Lehman Brothers in the US used a UK lawyer (Linklaters) and a UK accountancy firm (Earnst & Young) to approve their accounts. They could not find one in the US that was willing to do it - even for money! What does that tell us about the culture in the City of London?
Corrupt, do anything for money, amoral, psychotic, greedy. And these are the people the politicians turn to to regulate the financial industry.
And what do the choice of words tell us about the British media?
Naive, cowed, sycophantic, cowards, incompetent.
Posted by Nicholas Moore 12:10:59 PM