Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
The key to the whole scheme is the fact that prime collateral was used for Repo 105. Everyone is expecting accounting irregularities involving junk assets. FT Alphaville calls it counterintuitive and leaves it at that. Tyler Durden points out that this cements the case that the point of the exercise was entirely to reduce leverage at the time of reporting. And Financial Crookery gets the ability to pledge or exchange the transferred assets backwards, thinking it refers to Lehman's ability to dispose of the cash, not of the counterparty to dispose of the collateral.

The brainless should not be in banking -- Willem Buiter
by Carrie (migeru at eurotrib dot com) on Wed Mar 17th, 2010 at 01:14:43 PM EST
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