Not to worry Dick "Tragic, Mistaken Figure" Fuld - after all Repo 105, what was the line, merely "vindicated you." There is absolutely no need to jump on a one flight to Caracas.
March 19, 2010
The Honorable Eric H. Holder, Jr.
Attorney General of the United States
United States Department of Justice
950 Pennsylvania Avenue, NW
Washington, D.C. 20530
Dear Attorney General Holder:
I am deeply concerned about the facts that have come to light
regarding the demise of Lehman Brothers and the accounting manipulation
that contributed to it. I respectfully ask you to commission a task
force to investigate the Lehman situation as well as other companies
that may have engaged in similar accounting manipulation with a view to
prosecution of employees or agents who contributed to any violations of
According to the Report of the U.S. Trustee-appointed Examiner
Anton R. Valukas, Lehman presented a misleading picture of its financial
condition to the public by using extensive repurchase agreements known
as Repo 105 transactions. The Examiner found that "Lehman did not
disclose its use -- or the significant magnitude of its use -- of Repo
105 to the Government, to the rating agencies, to its investors, or to
its own Board of Directors." The result was to conceal its holdings of
bad assets and to temporarily remove approximately $50 billion of assets
from its balance sheet at the end of the first and second quarters of
2008. The Examiner found that Lehman used Repo 105 transactions for no
other articulated purpose than to shrink its balance sheet at the
quarter-end, in a manner that deceived investors and creditors about its
true financial state and misleading others.
We must work tirelessly to reduce the incidence of financial fraud
in order to restore trust and confidence in the financial markets. A
task force investigation and taking appropriate Federal actions in these
matters will contribute to these goals.
Christopher J. Dodd