Chris Dodd Asks Department Of Justice To Probe Lehman's Repo 105 And Other Firms' Shady Accounting Practices

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Fri, 03/19/2010 - 16:47 | 270525 sysin3
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Damn Chris Dodd.  Are we supposed to love him or vilify him ?  So very confusing.

He is like straddling both sides of the fence here.  Not good for the gonads.

Fri, 03/19/2010 - 16:49 | 270527 Assetman
Assetman's picture

Yeah... it appears to me his "legacy" will be that he managed to make enemies all over the place before riding into the sunset.

FWIW, you are supposed to vilify him. ;)

Fri, 03/19/2010 - 17:17 | 270544 sysin3
sysin3's picture

yeah, on balance, "vilify" wins.  But he ain't making it easy.

Fri, 03/19/2010 - 17:56 | 270564 Bob
Bob's picture

No way would he be making this show unless he had good reason to believe somebody else were about to do it.  The guy is bullshit through and through.  Property of the Great State of Delaware. 

Fri, 03/19/2010 - 21:04 | 270667 Bolweevil
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"We must work tirelessly to reduce the incidence of financial fraud (that I helped promote) in order to restore trust and confidence in the financial markets (so short term memory, medical marijuana mofo's will remember me for this instead of all the pork I pushed when I retire)."

Sat, 03/20/2010 - 01:37 | 270775 jeff montanye
jeff montanye's picture

yes, i think that about sums it up.  he is retiring and is desperate to swish some branches across the very deep and long set of footprints behind him that took us to where we are today.  but some of what he says/does before next january may be marginally useful.

Fri, 03/19/2010 - 18:17 | 270580 BlackBeard
BlackBeard's picture

Key word is "straddle" for he is a whore.

Fri, 03/19/2010 - 18:24 | 270584 Bob
Bob's picture

Cheap and ugly, too. 

Fri, 03/19/2010 - 19:17 | 270623 35Pete
35Pete's picture

He still stinks like an expelled douche of a three dollar whore. I wouldn't trust anything this guy or Frank say. Nothing. 

What you do shouts so loudly that I cannot hear what you are saying, right? 

Sat, 03/20/2010 - 09:03 | 270848 boooyaaaah
boooyaaaah's picture

Chis Dood: Round up the usual suspects

DOJ: Yessir

Sat, 03/20/2010 - 12:21 | 270908 Pedro
Pedro's picture

Should he get credit when he is just writing a letter that he knows will be ignored?  Just ask Rep Issa and his letter to Holder regarding the fed.  BTW, what an oxymoron to have the word Honorable and Eric Holder in the same sentence.

Fri, 03/19/2010 - 16:47 | 270526 InstantWinner
InstantWinner's picture

Repo 105?  Is that what they are calling Maiden Lane III now?  Add the Fed losses, the Fannie-Freddie-FHA Tarp and misc cash for clunkers type losses and aren't we talking real money here?

Fri, 03/19/2010 - 17:00 | 270532 goldfreak
goldfreak's picture

He just wants to salvage himseld before he leaves by apperaing to stand up to the banks

Fri, 03/19/2010 - 17:33 | 270534 hedgeless_horseman
hedgeless_horseman's picture

I think I'll send him some more letters he can print on his letterhead and mail on his way out the exit. He could start with this simple little plum: 

Dear US Federal Reserve Chairman,

Who, exactly, is equipped to tell us if the GSE Debts are sovereign debt?

We must work tirelessly...American families...stability...the public deserves nothing less...etc. and so forth...hurumph.



P.S. Look me up when you're in Ireland. A, B, C ya, wouldn't wanna be ya!

Fri, 03/19/2010 - 17:07 | 270539 Astute Investor
Astute Investor's picture

A day late and a dollar short.....

Fri, 03/19/2010 - 17:14 | 270542 johngaltfla
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I've got a better idea. Use an independent prosecutor to investigate the oversight of the Senate and Countrywide.



Fri, 03/19/2010 - 19:18 | 270624 35Pete
35Pete's picture

Even better idea. A western-style posse of ZH'ers. 

Fri, 03/19/2010 - 17:17 | 270543 Rainman
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Ernst & Young, Lehman's auditors, should also be thrown into the fire. No way they could miss the signifigance of a $50 billion balance sheet wipe, yet conveniently they chose to ignore the materiality of the transactions.

Concealing bad assets in financial institutions is now normal and accepted.

Shame on them all for jumping the gun.  < sarcasm off >

Fri, 03/19/2010 - 17:22 | 270547 steelhead23
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Senator Dodd chairs the U.S. Senate Committee on Banking, Housing and Urban Affairs.  He has the authority to hire his own investigator.  This letter is not an indication that he wishes to get to the bottom of the issue, this letter is a clear indication that he wants to appear to want to get to the bottom of it.  In fact, he is avoiding it.  He knows that Geithner is at least implicated in Valukas' report so he should know that Holder will not act on this letter.

In politics, things are seldom as they appear on their face.

Fri, 03/19/2010 - 17:39 | 270552 divide_by_zero
divide_by_zero's picture

Exactly! The fact that he's handing to Holder, a partisan hack who is perhaps as corrupt as anyone to ever hold the DOJ AG position, pretty much insures this goes nowhere.

Fri, 03/19/2010 - 19:20 | 270626 35Pete
35Pete's picture

Watch. They'll huff and puff and ..... nothing. 

At worst a low-level nobody gets sent to the Federal pokey to appease the masses, who will buy it hook, line, and sinker. 


As usual.....

Like they always do.....

And then reward them with re-election. 



Sat, 03/20/2010 - 01:43 | 270777 jeff montanye
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"i believe in god and senator dodd and keeping old castro down"

Fri, 03/19/2010 - 17:27 | 270548 ArkansasAngie
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Fraudulent loans took place a loan at a time and they occurred in our own backyards.

There's no reason for Washington to worry its little head about doing the right thing ... let’s start enforcing the law a district/county at a time.  Your local district/county prosecutor’s race is where you need to focus you attention and money.  State representatives may be needed to tighten up you state laws.  Your state Attorney General would be helpful.

I’m not going to count on Blanche Lincoln or Mark Pryor any more.


Fri, 03/19/2010 - 17:42 | 270554 buzzsaw99
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Fri, 03/19/2010 - 17:55 | 270562 ReallySparky
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When I originally read this post, I thought to myself, is this more of Tyler's humor?  Is this a joke?  I just remember Dodd standing all by his lonesome on the podium announcing the toothless bill to curtail the financial meyham.  It's a joke, agree with Buzz... :ROLL EYES

Fri, 03/19/2010 - 18:26 | 270587 digalert
digalert's picture

Dudd: "hey Barney, if we can get Holder to lock in on this Lehman thing it oughta keep him too busy to look at any other financial..." wink wink

Fri, 03/19/2010 - 18:54 | 270607 Bob
Bob's picture

As a worst case, it still works extremely well for . . . well, for everybody who is responsible.  The rest of us, maybe not so much. 

Fri, 03/19/2010 - 19:48 | 270637 docj
docj's picture

Where the heck have you been the last, oh, 3-years Chris?  A little hard to take a Friend of Angelo at all seriously when you could have done something about this (because you either knew - in which case you're filthy, or you didn't, in which case you're incompetent) long ago.

Just leave, Chris.  You won't be missed.

Sat, 03/20/2010 - 01:47 | 270778 jeff montanye
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i wish he'd stay and lose to schiff.  now i'm not so sure which way it will go.  mass gives me hope (although brown isn't nearly as interesting as schiff).

Fri, 03/19/2010 - 21:17 | 270683 straightershooter
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My bet is Eric ' holder for justice" Holder will go after Ernst and Young instead. Dick " vindicated or not" Fuld is already down and out, put him into Federal Prison will just make the federal deficit deeper, while prosecuting E & Y can certainly collect billions of fines from that City "everything goes for banksters" Easy & Yield.

Fri, 03/19/2010 - 22:50 | 270722 Ned Zeppelin
Ned Zeppelin's picture

Yes, as noted by more perceptive folks than I above, this letter, roughly translated, says "kindly take no action about anything I say in this letter. Have a nice day. Chris"

Phucking jokester and scum. 

Sat, 03/20/2010 - 00:01 | 270749 Rick64
Rick64's picture

How about investigating the ones that are still in business to see if they engaged in or if they have been engaged in REPO105 and not by the FED. Don't worry about GS though they have 12 people from the FED over there everyday. I sure they will (hide) find plenty.

Sat, 03/20/2010 - 01:24 | 270771 jomama
jomama's picture

thanks, i needed a good laugh.

Sat, 03/20/2010 - 01:28 | 270773 Hephasteus
Hephasteus's picture

LOL they think they will have trust again.

I just want to see the end of the summer when the tech sector starts crapping confessional booths full of priests molesting alter boys.

Sat, 03/20/2010 - 01:51 | 270779 jeff montanye
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that is one hell of a metaphor.  why the tech sector?

Sat, 03/20/2010 - 11:20 | 270889 Hephasteus
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Because it's completely driven by countereit money. It's going to make enron look like a small time grift.

Sat, 03/20/2010 - 04:38 | 270816 sweet ebony diamond
sweet ebony diamond's picture

i want to see each and every lehman employee on the stand.

i want to see each one of them say "i don't know what I was doing"

i want each of them to give back their ill-gotten gains.

i want them to go clean floors for the rest of their life 

Sat, 03/20/2010 - 04:43 | 270817 sweet ebony diamond
sweet ebony diamond's picture

sorry about that. just venting. everybody can go back to their world.

Sat, 03/20/2010 - 11:31 | 270892 Hulk
Hulk's picture

It was the mortgage arm of Lehman that caused disaster

Or as McDonald states: "we had 20 thousand traders making money and 8

that lost money"

8 traders did this! wow

Sat, 03/20/2010 - 05:37 | 270820 marvincooley
marvincooley's picture


Does anyone really believe the department of injustice will do anything but search for a scape goat to through under the bus. The cronies will not be prosecuted because they own the prosecutors. Some fall guy will get the blame and then it will be business as usual. These people will only get whats coming to them through karma or in other words reaping what they sow. The crash will be huge and the mobs mean.

Sat, 03/20/2010 - 10:13 | 270866 Lndmvr
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Remind me,  which ones the dog, which ones the pony?

Sat, 03/20/2010 - 11:24 | 270891 anony
anony's picture

Fuck Dodd and the horse he came in on.

You people who voted for this crook for all those years ought to have your heads examined.

Sat, 03/20/2010 - 16:47 | 270998 jedwards
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Can someone explain to me the significance of Repo 105?

As far as I can surmise, the only thing in question is the effect of Repo 105 on the leverage ratio of Lehman.  But leverage ratio is not a GAAP number.  From what I can tell, the examiner had no problems with the actual accounting treatment of anything in Lehman's report.

It seems like given how much leveraged assets were on Lehman's books ($600+ billion), $50 billion isn't that big of a deal.  As far as I can tell, the reactions of the Lehman executives in the post a few days ago poo-pooing it seem to be relatively accurate.

Were Lehman's leverage ratios that close to some legal boundary?  2 or 3 points when you're dealing with a ratio of 40+ doesn't make a huge difference.

Sun, 03/21/2010 - 01:22 | 271188 chindit13
chindit13's picture

I'll try.  It's part of a pattern of deceit and obfuscation.  At 105, LEH also booked a false gain, which not only runs through the IS, but adds to capital, thus further adding to the false leverage picture.  Granted it might have only made them look 35:1 instead of 40:1, but every little bit helps.

The pattern of deceit continues where LEH overstated by $42 billion the marketable value of securities held, which they claimed could be "immediately liquidated under even the most adverse market conditions".  Didn't quite turn out that way, especially when the adverse condition was the collapse of LEH.  Then there are the CLO's created for the sole purpose of using them as collateral at the PDCF window at the Fed.

Neither stupidity nor excess hubris are capital crimes, which is lucky for Fuld et al because they would all be rolling up their sleeves to take the lethal injection.  Fraud and false conveyance, however, are usually (this is America, after all) crimes, and at this time the people need to be handed an expendable head on a platter, or at least have one of our betters go through the perfunctory motions. 

Sun, 03/21/2010 - 17:10 | 271601 anony
anony's picture

If you really believe that this is the only financial fraud they have committed then you are of the contingent that everything must be proven in court of law for you to consider it the truth and a fact.

That way lies perdition for you.

Lehman failed because it committed more financial crimes than will ever be admitted to or proven. 

Sat, 03/20/2010 - 19:28 | 271049 CB
CB's picture

"Sincerely Christopher J. Dodd Chairman"


Sat, 03/20/2010 - 20:30 | 271061 Nikki
Nikki's picture

There is no law and when the shtf there will be no order.

The time for those in power to decide to do the right thing passed a long time ago.

Where is Marla and does she still hope for justice within the system or is hope better served dreaming that some waiter in Florida will stab that devil in the heart... And will it matter if he does?. Another Gollem can be summoned to protect the bankers..

.....The rich control the media the government, the law. To make some kind of difference that everyone will know. Eradicate the fascists.. Revolution will grow..

Sat, 03/20/2010 - 23:31 | 271143 Mr Lennon Hendrix
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Bawnee "Bibbity Boop" Fwank tawks poopidy peep, tells lies. 

Federal Reserve Shouldn't Have Power Stripped: Frank

Sun, 03/21/2010 - 10:20 | 271306 Chaos Theory
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It's hard to take him seriously when aspects of his reform legislation will directly benefit the CME Group, which owns the Chicago Mercantile Exchange.  Dodd's wife, Jackie Clegg, is a director of the CME and was paid apx $150K by them in 2009 and owns shares worth apx. $235K.

Here's the whole story:

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