And The Lehman Disclosure Hits Just Keep On Coming; If Fuld Has Not Yet Left The Country, Doing So ASAP May Be A Very Good Idea

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Fri, 03/12/2010 - 00:15 | 262828 Crummy
Crummy's picture

Something told me, "eh, click ZH one more time before bed...", and once I hose down the roof real good I can sleep soundly.

 

Fri, 03/12/2010 - 00:24 | 262837 mikla
mikla's picture

Guys, Dudes, I just need $5B.  Here, you can hold my IOU's where I've previously pledged $5B as collateral.  That should do it, right?

Fri, 03/12/2010 - 00:42 | 262851 John Self
John Self's picture

Why didn't Lehman just make it simpler and offer some common stock as collateral?

Fri, 03/12/2010 - 01:09 | 262864 Crummy
Crummy's picture

Sounds kewl. Here, buy my $30 electric bill for 200 bucks, then I'll but it back from you for 50mil and leverage it for 6bil, pay my bill  and buy a yacht with the balance.

Now you know why Dimon is THE HARDEST METAL KNOWN TEH MAN!

KKTHXBAI

~J-DAWG

Fri, 03/12/2010 - 02:17 | 262945 Anonymous
Anonymous's picture

+1

That about sums it up.

Fri, 03/12/2010 - 04:01 | 263010 Reggie Middleton
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P.S. we wont reference which volume the selections above come from just to make the lives of all the other mainstream, and otherwise, media (and in some very amusing and loss-generating cases, both at the same time) who have an uncanny desire to copy and paste from ZH without attribution just a little more difficult.

Whoa!!!

Fri, 03/12/2010 - 05:16 | 263027 Squid-puppets a...
Squid-puppets a-go-go's picture

as if they'd have the courage or conviction to use this material

i'm in awe of the bravery of ZH in how hard they slam the SEC here. Holy shit id not be surprised if it causes SEC to sue for slander. Then retract the lawsuit on realising ZH are friggn RIGHT!

Fri, 03/12/2010 - 13:36 | 263378 Anonymous
Anonymous's picture

"It's not what you know Officer Hoyt, its what you can prove"

Fri, 03/12/2010 - 08:14 | 263066 Miles Kendig
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There are indeed aspects of propriety that must be observed within and between the "professions". Proper accreditation is a cornerstone.

Sat, 03/13/2010 - 09:50 | 264241 gilligan
gilligan's picture

Thanks to ZH I'm living on progressively less and less sleep.  Compelling reading all this.

 

Tyler and Co., you truly rock. 

Fri, 03/12/2010 - 01:00 | 262865 chumbawamba
chumbawamba's picture

Again and again, the rabbit hole goes deeper and deeper, until it finally leads to GOLD BITCHES!!

I am Chumbawamba.

Fri, 03/12/2010 - 01:00 | 262866 Anonymous
Anonymous's picture

I think that I saw this in Volume 5. What is fascinating is in the section that deals w/disposal of LEH’s derivative positions huge blocks of text are blacked out. Now who bought those assets and why is it a guarded secret?

But the examiner goes on to say “Thus, LBI may have a colorable claim against CME, or any of the firms that
bought LBI’s positions at a steep discount during the liquidation ordered by the CME,
for the losses that LBI sustained as a result of the forced sale of house positions held for
the benefit of LBI and its affiliates.”

Fri, 03/12/2010 - 01:04 | 262868 Missing_Link
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And here I thought the endless financial fiasco of 2007-09 had finally blown out completely and eliminated every last bit of Wall Street's credibility.

But no.  That sh*t just keeps coming.

Fri, 03/12/2010 - 01:25 | 262887 ShankyS
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Some Fed flunke is out behind the building kinking up the hose. When it lets go, the full frontal will finally occur. We have not even scratched the surface. Sadly, transparency, regulation and any sort of legal accounting are far and away out of the question - FOREVER. Was't that someone's platform for election?

Fri, 03/12/2010 - 03:44 | 262997 jeff montanye
jeff montanye's picture

who was that masked man?

Fri, 03/12/2010 - 08:41 | 263077 Yes We Can. But...
Yes We Can. But Lets Not.'s picture

You called?

Fri, 03/12/2010 - 10:17 | 263129 Postal
Postal's picture

Lots of strange words on ZH lately: "Planning", "credibility." Told 'ya I didn't understand this stuff. ;)

Fri, 03/12/2010 - 01:28 | 262891 Augustus
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There may be some sort of claim against JPM, but I sure don't see it explained here.  The whole system had operated on the honor system for years and years.  Lehman was a high rated credit and should have been reliable for the reasonable valuation of the posted collateral.  Sure, it has come to light that they were not.  But the point is, why is JPM at fault for requiring more cash collateral when they figure out that there are some problems with the valuations?  

Fri, 03/12/2010 - 10:10 | 263126 Lux Fiat
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An honor system presupposes...honor.  It's pretty clear that there has been precious little of that in many governmental and financial quadrants for quite some time.

Fri, 03/12/2010 - 01:29 | 262892 Anonymous
Anonymous's picture

Seems that worthless collateral was double or even triple posted against more worthless paper and hence leverage was built on air. A perpetual hairdryer inflating the Bubble in the Dark.

If a bubble pops in the dark can anyone see it?

Nothing's changed. Still inflating full speed with Ben's hairdryer.

Fri, 03/12/2010 - 01:32 | 262896 Anonymous
Anonymous's picture

You know what's going to come of this? Nada, zip, zero, a big fat nothing. Fraud, sorry, business as usual. That art of being seen to be doing something while doing nothing.

Fri, 03/12/2010 - 04:25 | 263018 20yearRevolution
20yearRevolution's picture

If our fellow sheep...i mean americans can understand this then it may result in charges if for no other reason than it is an election year.

Fri, 03/12/2010 - 09:59 | 263065 Cognitive Dissonance
Cognitive Dissonance's picture

It can be easily understood by we Americans. But it will not be understood because to do so would mean accepting responsibility to effect change. We Americans are good at calling for change, not so good at actually changing and never good at forcing others to change.

You see, if I point my finger at you, then you might point your finger at me. Since I don't want to do the hard work of changing myself, I'm not going to expect you to change. Thus we both slide further down into the cesspool, complaining all the way about the smell and how someone should do something about it. Righteous indignation about the conditions but lacking the desire or balls to actually do anything about it.

"Someone should do something about this mess. What's on TV honey? Pass the nachos and dip over here. Oh good, Heroes is on. Now those guys know how to fix things"

Fri, 03/12/2010 - 10:19 | 263131 Postal
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“How fortunate for governments that the people they administer don’t think.”
-- Adolf Hitler

Fri, 03/12/2010 - 12:03 | 263222 Anonymous
Anonymous's picture

“Make the lie big, make it simple, keep saying it, and eventually they will believe it” -Adolf Hitler

... eventually reality caught up with everybody. Nobody escaped the truth. It was not pretty, and a whole nation was shamed forever.

Fri, 03/12/2010 - 12:15 | 263233 Anonymous
Anonymous's picture

Yup
+100

Fri, 03/12/2010 - 01:36 | 262900 BlackBeard
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Dickie Boooooyyyy!! Bubba's a comin' for youuuuuu.

Fri, 03/12/2010 - 02:07 | 262906 carbonmutant
carbonmutant's picture

If this administration doesn't prosecute this the next one will.

Fri, 03/12/2010 - 11:47 | 263209 Anonymous
Anonymous's picture

that is bullshit, carbonmutant. war fog will take care of this attrocity and thousands of undisclosed debt games just fine.

Fri, 03/12/2010 - 01:56 | 262916 knukles
knukles's picture

Gotta love it.  Every party imaginable being drawn into the shitstom, the malestrom of felonious wrongdoing on a grand scale.  The parties to all transactions, regulators, investment bankers selling and buying the corpse, central banks, legislators, hedgies, CDS writers and buyers, CLO, CDO originators, parkers and buyers, by God, it just doesn't end..   

Add in the additional pressure for the Fed audits, and the whole game could pop!

Refreshing!  Get ready for an environment of low to no credibility and trust.

Fri, 03/12/2010 - 02:13 | 262938 Anonymous
Anonymous's picture

"Refreshing! Get ready for an environment of low to no credibility and trust."

You say that like there is any trust now.

Fri, 03/12/2010 - 03:49 | 263003 jeff montanye
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can one imagine what a pecora type commission (with unlimited scope) could find?   the mind boggles.

Fri, 03/12/2010 - 02:00 | 262925 Bear_Cub
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P.S. we wont reference which volume the selections above come from just to make the lives of all the other mainstream, and otherwise, media (and in some very amusing and loss-generating cases, both at the same time) who have an uncanny desire to copy and paste from ZH without attribution just a little more difficult.


Classic ZH. Spot on.

Fri, 03/12/2010 - 02:02 | 262929 Anonymous
Anonymous's picture

dick fuld is a piece of shit

Fri, 03/12/2010 - 02:10 | 262936 Dr Hackenbush
Dr Hackenbush's picture

Way better than a Ponzi.  Leads me to believe that they would still be carrying on had the economy had not been called into question and forced "the clearing bank" to cover its ass.     

Fri, 03/12/2010 - 09:58 | 263121 SWRichmond
SWRichmond's picture

Way better than a Ponzi.  Leads me to believe that they would still be carrying on had the economy had not been called into question and forced "the clearing bank" to cover its ass.    

Indeed; even now, JPM, Goldman, the Fed, U.S. dot gov et al are carrying on as if they were solvent, all while evidence continues to mount (some might say it's plain to see) that they're not.  The whole thing is built on lies.  And see the above post by Augustus as to why: http://www.zerohedge.com/article/and-lehman-disclosure-hits-just-keep-co...

The whole system had operated on the honor system for years and years.  Lehman was a high rated credit and should have been reliable for the reasonable valuation of the posted collateral.  Sure, it has come to light that they were not.  But the point is, why is JPM at fault for requiring more cash collateral when they figure out that there are some problems with the valuations? 

See?  It's an honor system.  You believe me and I believe you, and we're both aware that the regulators have got our backs, so it's all good among friends.  For the rest of us out here in the hinterlands, who can believe the valuation of anything going forward?  Who can rationally estimate the viability of any business?  Who has a client base that will be able to keep buying?  Whose business model is sound?  Whose capital is misallocated?  Who even has any capital?  It's all based on confidence; any financial system is.  But this one has been stretched and abused past the breaking point.  It's a dead man walking.

My pending decision to cash out my IRAs is getting to be easier and easier to make.

Fri, 03/12/2010 - 11:53 | 263214 Cognitive Dissonance
Cognitive Dissonance's picture

SWR,

"You've been living in a dream world, Neo" comes to mind as I read your post. Since all currencies have no basis in reality, everything bought/sold/denominated in those currencies has no basis in reality. This is the logical progression of a fiat currency system. They have always failed and they will always fail. There are two reasons why this one has lived longer than most expected.

1) The powerful (illusional) compounding power of computers allows for massively more permutations of derivatives then ever before thought possible in the simple fiat currency concept, building in a patently false sense of permanency, reliability and solidity.

2) The wide spread mind control methods use by all governments (primarily through television and especially over the past 10 years) has given those who weave the illusion more credibility than has ever been accomplished in the past 2 thousand years. Since a fiat currency is by its very nature a faith based currency, the delusional world of television has help create a more stable illusion (thus engendering faith) for longer than previously though possible.

But every trend line always reverts to mean. Always. 

Fri, 03/12/2010 - 02:11 | 262937 carbonmutant
carbonmutant's picture

We should expect Congress to interview Turbo Timmy about this. I'm sure the White house is.

Fri, 03/12/2010 - 02:54 | 262969 Rusty_Shackleford
Rusty_Shackleford's picture

I doubt any of them have any freaking idea what any of this means.

If it can't be conveyed in one sentence (preferably with a few words that rhyme) and understood by someone with an IQ of 50, they won't be interested.

Fri, 03/12/2010 - 12:11 | 263229 John Bigboote
John Bigboote's picture

Nice job Rusty. I have been an admirer of your work over at JawaReport for several years now.

http://abcnews.go.com/TheLaw/Technology/internet-monitors-tracked-jihad-jane-years/story?id=10069484  

Fri, 03/12/2010 - 02:23 | 262950 Anonymous
Anonymous's picture

I thought the "buying insurance on the Titanic from someone sailing on the Titanic" was just an expression, but Lehman being the guarantor on paper it is using as collateral is just that. Amazing and really scary.

Fri, 03/12/2010 - 02:53 | 262967 Matto
Matto's picture

It needs to be summed up in a nice simple soundbite and issued as a press release.

Fri, 03/12/2010 - 02:59 | 262971 chindit13
chindit13's picture

I believe it's time to close ranks.  BAC?  Put out a conviction buy on the Lehman carcass.  JPM?  You've got BAC's behind.  WFC?  You don't need us, you've got Warren to bless your cheese grater level of new loss reserves on your California RE portfolio, 2nds, and HELOCs.  And we at God'S own firm will orchestrate.

And I'll see you all in Costa Rica this weekend.  No extradition treaty, you know.

Fri, 03/12/2010 - 03:07 | 262977 chindit13
chindit13's picture

I'm going to give Tim Geithner the benefit of the doubt and say he probably isn't smart enough to be as corrupt and devious as he would have needed to be to oversee all of this madness. 

Stupid might save your heinie from Three Strike Bubba and his eight pound salami at Rahway, Timmyboy.

Fri, 03/12/2010 - 03:54 | 263007 jeff montanye
jeff montanye's picture

might not.  remember he's episcopalian. 

Fri, 03/12/2010 - 10:26 | 263135 Postal
Postal's picture

Spot on. In my years of military and civil service, I have rarely encountered anyone who was smart enough to orchestrate any kind of "conspiracy." Lots of last minute, "oh, shit" CYA.

Anyone smart (and capable) enough to intentionally hid this mess is too smart to work for the government.

Fri, 03/12/2010 - 13:41 | 263387 hedgeless_horseman
hedgeless_horseman's picture

Bull shit.  The regulators didn't need to be smart enough to invent the scheme, only go along with it.  Plus, it isn't rocket surgery.  When you're short a few $M and "the Q is due" the solutions become far more clear and the consequences very foggy.  Plus, who is going to find out?  The FRBNY?  The SEC?  The fix is in; so, nobody will ever know.  Or so they thought.

Fri, 03/12/2010 - 03:07 | 262978 Anonymous
Anonymous's picture

Leave the country??! You are assuming he'll get arrested? This is the look forward not backward administration. He'll keep his 100M after all Eddie Curry almost makes as much.

Fri, 03/12/2010 - 12:09 | 263228 tmosley
tmosley's picture

I think it's more likely that a lynch mob might show up on his doorstep one night than a few government enforcers showing up on his doorstep one afternoon.

Fri, 03/12/2010 - 03:20 | 262983 Matto
Matto's picture

... time to take over wikipedia with additional entries agaisnt all these assclowns.

Do NOT follow this link or you will be banned from the site!