Friday, July 30, 2010

Stocks and Sectors

Delivering Hot Stock Picks

Karl Denninger submits:

Sarbanes-Oxley was supposed to prevent crap like this:

click to enlarge

From the paper:

Lehman employed off-balance sheet devices, known within Lehman as “Repo 105” and “Repo 108” transactions, to temporarily remove securities inventory from its balance sheet, usually for a period of seven to ten days, and to create a materially misleading picture of the firm’s financial condition in late 2007 and 2008.


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