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Examiner: Lehman used undisclosed "balance sheet manipulation"

By Anonymous

The NY Times Deal Book has posted the Lehman's examiners report online: Court-Appointed Lehman Examiner Unveils Report

There is an interesting excerpt on the apparent use of repo transactions to bolster Lehman's balance sheet:

... former Global Financial Controller Martin ... Kelly believed ?that the only purpose or motive for the transactions was reduction in balance sheet?; felt that ?there was no substance to the transactions?; ... In addition to its material omissions, Lehman affirmatively misrepresented in its financial statements that the firm treated all repo transactions as financing transactions ? i.e., not sales ? for financial reporting purposes.

From Reuters: Examiner sees accounting gimmicks in Lehman demise

And from the WSJ: Examiner: Lehman Torpedoed Lehman and How Lehman Allegedly Manipulated Its Balance Sheet

Full post as published by Calculated Risk on March 11, 2010 (boomark / email).