Lehman Brothers' Use of 'Repo 105' To Hide Debt

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Anton Valukas, chairman of Jenner & Block and the court appointed examiner of Lehman Brothers' collapse and bankruptcy filing, released his report last week.  And one of his findings jumped out at a lot of people: Lehman's use of something called Repo 105 transactions to hide the amount of debt at the firm.  Paddy Hirsch, of Marketplace, provides one clear explanation of Repo 105 in this Whiteboard video:

Repo 105 from Marketplace on Vimeo.

You can read the full Valukas report here.  And Abigail Caplovitz Field of Daily Finance provides a very good summary of the report here. (hat tip to John Cassidy for the recommendation)


Posted 03-17-2010 9:56 AM by Graham Griffith
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