Thursday, March 18, 2010

Lehman Brothers

> Rep. Mary Jo Kilroy (OH-15) has been working hard to find out more about the mess at Lehman Brothers. WSJ:

U.S. Securities and Exchange Commission Chairman Mary Schapiro on Wednesday acknowledged that the agency's oversight of Lehman Brothers Holdings may have been inadequate during a critical period when the company may have masked its losses.

The SEC wasn't aware of an accounting method, dubbed Repo 105, that allegedly allowed Lehman to hide some of the risks it took before collapsing in 2008, Ms. Schapiro told the House Appropriations Subcommittee on Financial Services....

...The Financial Services Committee hearing on Lehman was requested separately by Rep. Mary Jo Kilroy (D., Ohio) and Committee Ranking Republican Spencer Bachus of Alabama. "How did the regulators charged with policing Lehman for the benefit of the American public allow this to happen?" Ms. Kilroy asked....

Although Schapiro has just been on the job for a little more than a year, she has had to do a lot of investigating of the mess left by the previous administration.

* Republican Rep. John Boehner, of the Party of No, addressed a meeting of the American Bankers Association, according to MarketWatch. Boehner's comments to the bankers make him appear very sympathetic to the plight of the bankers. I wonder how the people in Ohio's 8th district feel about Boehner being more concerned with the bankers' needs than the everyday citizens in his neighborhood. People should be asking Boehner why he is against health care reform but for the rights of bankers.

*** People have been wondering about John Kasich's final days at Lehman Brothers. It is well-known that many high level executives left Lehman around the time of the collapse of the firm. Many of them left with huge bonuses in their pockets (see ThinkProgress). Was Kasich one of the Lehman executives that left with a big bonus despite the fact that Lehman Brothers collapsed?