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David Einhorn To Be Brought In As Witness In House Financial Services Hearing On Lehman
Gasparino breaks news that David Einhorn will be brought in as a witness in the upcoming Congressional hearing on the Lehman's fraudulent disclosure as reported by the much discussed Anton Valukas report. According to the Fox Business senior correspondent: "Einhorn through a spokesman declined to comment, but a person close to
Einhorn said “it wouldn’t be a surprise” if he was called in some way
given his role in exposing Lehman’s problems. A spokesman for US Rep.
Barney Frank, the chair of the committee, didn’t return a telephone
call for comment." With Tim Geithner most likely present at the hearing, this will be quite a memorable spectacle, which will certainly result in absolutely nothing as usual.
From Charlie:
Einhorn was a key figure in the debate over whether Lehman in 2008 was so saddled with toxic investments, and whether or
not the firm properly accounted for those investments. Lehman executives, including former CEO Dick Fuld and former CFO Erin
Callan, shot back, saying that Einhorn had an ax to grind since he was a short seller and made money pushing down shares of
Lehman stock. In a short sale, an investor borrows stock, immediate sells it, then hopes to pocket the difference when the
shares decline and he repays the borrowed shares.
In the summer of 2008 Einhorn won the battle after Lehman announced a massive loss and the need to raise capital. The move
led to the resignation of Callan as CFO, and Joe Gregory as Lehman’s president. As first reported by FBN, Callan has retired
from Wall Street altogether as investigations swirl over her role in the firm’s demise.Since then, Einhorn has maintained a pretty low profile, though his
name gained attention once again after a report on Lehman’s demise
issued by the firm’s bankruptcy examiner called some of the gimmicks
used to mask the firm’s faltering finances “grossly
negligent.” The report stopped short of saying any of the key figures at the firm committed criminal securities fraud, but
it suggested that at the very least some of the accounting techniques, including the use of something called Repo 105, may
constitute civil fraud.
Now some staffers inside the financial services committee want to see if Einhorn can help them take the investigation to
the next level, either as a public witness or helping behind the scenes, though the final decision has yet to be made, FBN
has learned.
As a reminder, at the time of Einhorn's disclosure, there were rampant accusations that the short seller had no clue what he was talking about. Now Einhorn is going to Congress to advise lawmakers how to make sure Lehman's fraud does not repeat. Too bad it is now sanctioned by the government.
Full Gasparino clip.
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Im sure somehow it will lead to a rally. Perhaps Goldman found out Jack Ruby will be in attendance.
hah! how's that for an " I told you so" from Einhorn.
I would love to hear his opinion on the current state of the economy and what he believes is being accomplished by allowing banks to falsify their balance sheets.
How is this for politicians being "out of touch" with the economy
http://www.foxnews.com/politics/2010/03/23/fox-news-poll-say-economy-col...
I would view it, but as I am under 70 years old Fox News is blocked by my ISP.
Deluxe Kabuki theater! Should be better than most. I think I will get a new shirt and a haircut for this one.
Since realty has no meaning in the new normal, may I suggest a silk shirt and hair styling. Based upon what I'm told, hair styling means you pay $50 more for a pretty female "hair stylist" to run her fingers through your hair instead of fat Joe the barber with the bad breath and the (ironically) bad haircut.
But what do I know.
Will those giving testimony be accompanied by "minders" seated next to or behind them?
I hope he doesn't commit suicide by shooting himself in the head twice. That has happened in some cases. Really. I guess you really have be committed to the task when that happens.
Gary Webb, R.I.P
I hope David does not ski, trees are everywhere.
Is Dick Fuld going to be there to give us the direct deposit info to get our money back?
He said he was going to stick it to the shorts like myself and he stuck it to me for 60 grand in one day loss( 60% of my overlevered Lehman short account holding it through the day it went from 22 low to 32 then the next day from 32 up to 46 on the fake accounting news)
I want my money back and I'm going to go to the hearing too.
http://funy1.blogspot.com/2010/03/dick-fuld-please-advise-us-where-to.html
I can't believe Dick is still getting a $750,000 salary. Thats insane.
Einhorn may be very knowledgable as an expert witness, but I wonder how credible he is?
I think it would be interesting to gauge Einhorn's response under oath to questions about whether or not he ever had a naked short on Lehman (or any other companies).
See the following link for that perhaps may provide clues as to his credibility...
http://www.deepcapture.com/how-activist-investors-david-einhorn-and-dan-...
David, don't go skiiing!!!!!
Starting a pool here folks. Take your pick. What happens to David?
a. Suicide from two shots to the temple.
b. Plane crash
c. Heart attack
d. Slips on icy sidewalk in Palm Beach, Florida. Passes away from a head injury.
e. Skiiing accident in Vermont. Hits tree at 50 mph while flying down bunny hill.
f. Dies of unexpected, rapidly spreading cancer. No family history and rumors that autopsy discovered ground plutonium in his gut are passed off as crazy conspiracy theory.
g. Found decapitated in the woods. Death ruled "natural causes".
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