Government’s Next Step to Pull U.S Out of the Recession

When Lehman Brothers announced bankruptcy and the economy went into a recession, the Fed did its best to avoid a 1930s like scenario. It pumped a lot of money into the economy to maintain liquidity and help businesses survive.

Now that the economy is recovering, the Fed will have to act in the opposite direction in order to control the surplus money in the system or we’ll have to face a period of high inflation. Several economists have emphasized the need for the Fed to act before it is too late. [Read more…]

Accounting Malpractices Continue Even After Reforms

New revelations about the erstwhile Lehman Brothers Holdings Inc, have shown that governmental measures to curb accountancy malpractices have failed as exemplified in this case. [Read more…]

Lehman Brothers Investigation Causes a Stir

The report on an investigation into wrongdoing at Lehman Brothers before the company collapsed has caused quite a stir among regulators and the financial industry.

The comprehensive report, which was authored by Anton R. Valukas, an examiner appointed by court to investigate the company’s bankruptcy has blamed Lehman’s top management and auditor Ernst and Young of using accounting gimmicks to hide troubled assets. The most controversial was the use of an accounting trick known as Repo 105 that allowed the company to shift a massive $50 billion of toxic assets. [Read more…]

Report on Lehman Brothers Collapse Blames Executives

The report on the collapse of Lehman Brothers has come out and it has blamed the company’s executives, its auditors and its rivals of wrong doing. The 158 year old Wall Street bank went bankrupt in 2008, triggering a huge financial crisis.

Anton R. Valukas, who was appointed by the court as an examiner to understand what went wrong in the last few days of the company authored a 2,200 page report detailing his findings. He claims that the senior management of the company indulged in balance sheet manipulation to hide its insolvency. [Read more…]