3 ms·
What about the people that didn't have good intentions? How do you feel about Lehman's Repo 105 maneuver where they intentionally used a Tobashi scheme to hide
by rando444 8y ago
What about the people that didn't have good intentions?
How do you feel about Lehman's Repo 105 maneuver where they intentionally used a Tobashi scheme to hide their losses from their investors?
The state of New York went after Ernst and Young on fraud charges for helping facilitate the scam and E&Y ended up paying a $10mil fine.
Is this justice? It doesn't feel like it.
- hueving 8y agoLehman went bankrupt. It seems they got precisely what they deserved. If the only problem were the bad actors it wouldn't have been a systemic collapse.
- ergothus 8y agoA company going bankrupt does not mean any decision makers were negatively influenced enough to not repeat the actions. I doubt THEY went bankrupt. I don't know enough to say if your conclusion is true or false, but I dont follow your logic. Why can't bad actors, if they are pervasive, cause a systemic collapse? From what I heard, incomes were fabricated, risks downplayed, and policies ignored. The insurance against the risk was priced on false premises. How can these bad acts (by bad actors) not cause a risk of systemic collapse?
- inthewoods 8y agoI never understood why Dick Fuld wasn't put in jail. He deliberately misled investors on the amount of leverage they were operating under. I thought Sarbox, which required the CEO and CFO to sign off on their public financial statements, would have caught this.