NYT reveals a secret Lehman Brothers memo detailing how they temporarily transfered their exposure to the risky investments tied to subprime mortgages and commercial real estate:
Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data, ability to repeat discredited memes, and lack of respect for scientific knowledge. Also, be sure to create straw men and argue against things I have neither said nor even implied. Any irrelevancies you can mention will also be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.
"Overall household indebtedness is up from $7 trillion to almost $10 trillion since 2000. On this sum, we estimate, the American consumer has an annual interest bill of more than $500 billion; a sum, by the way, that vastly exceeds his current income growth." —Kurt Richebacher
Knowing that the vote over the weekend in Greece was really a referendum on Euro membership, a majority of the Greek Parliament said yes to staying. European Finance Ministers meet again on Wednesday to solidify the 2nd bailout package for Greece at the same time hopefully a deal is consummated between Greece and its creditors this week. The Greek 14.5b euro bond that matures on March 20th is up by 2 pts. The optimism that all will be completed and contained AGAIN to Greece has yields lower in Portugal, Spain and Italy. The iTraxx Financial Index is also narrower by...
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April 13th, 2010 at 7:14 am
[...] Disclosures « Lehman’s Secret Memo Hiding Risk [...]
April 13th, 2010 at 11:06 am
Great timing to show this recipe for financial statement fraud along side the Libor to Treasury spread. The big banks knew about each others secret leverage strategies and the real value of the toxic assets. That is why Libor spreads blew out. the banks were each other JUNK.
Gotta learn next time that when banks refuse to lend to each other the closet is full of some nasty skeletons.
FT yesterday had an article about banks scams to get around any new Bassel capital requirements. What good are capital requirements if Banks are allowed to dodge them with off balance sheet entities like this.