HONOLULU (HawaiiNewsNow) - Well, here we are, back to wondering why the Bush administration bailed out most major Wall Street financial houses, but let Lehman Brothers die.
Recently I told you that Lehman Brothers had used an accountant's shell game to hide its debt, by selling risky assets just before making its quarterly reports to the public, and repurchasing them right after. The party that agreed to buy the assets would sell them back at profit, all of this agreed to in advance.
Federal regulators then asked rival financial giants if they did this.
Well, they did.
It's not clear if they did it as much... Maybe not.
But the Wall Street Journal says 18 banks including Goldman Sachs, Morgan Stanley, JP Morgan Chase, Bank of America and Citigroup... All temporarily lowered their debt every quarter just when it was time to report to the public.