Lehman Lies But Nobody’s In Jail — Robert Lenzner
The lies of Lehman were multifold. Three times, in late 2007 and the first half of 2008, Lehman used “balance sheet manipulation,” according to the examiner’s report, to hide debt of $38.6 billion, $49.1 billion and $50.4 billion.
That debt was made to disappear temporarily so that at the end of the quarter Lehman would not appear to investors, counterparties, regulators and rating agencies as a firm about to become insolvent. This lack of disclosure was substantive and “created a misleading portrait of Lehman’s true financial health,” the report states.
