Category Archives: Accounting

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Accountants spar over Repo 105

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CPA Tom Selling at Accounting Onion does not think much of the Financial Accounting Standards Board’s proposal to solve the Repo 105 sleight of hand. Lehman Brothers made Repo 105 famous when the bankruptcy receiver discovered Lehman was using a … Continue reading

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Accounting rules helped Lehman hide its shaky condition

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CPA Tom Selling thinks the House Financial Services Committee should examine whether the Financial Accounting Standards Board bears any responsibility for the economic damages caused by accounting rules he says allowed Lehman Brothers to misrepresent its financial condition. From his … Continue reading

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“Someone needs to tame repo on Wall Street”

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Peter Eavis, who often has insights on banking in the Wall Street Journal feature Heard on the Street, has this to say March 12, about the repurchase market: The dark irony of all this is that banks have long argued that repo … Continue reading

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Securitization accounting is “gimmickry”

The Accounting Onion would like Financial Accounting Standards Board Statement 140 to be wiped off the face of the earth. He calls it, “that bric-a-brac of off-balance sheet accounting gimmickry.” Statement 140 is the ruling in 2000 that established how companies … Continue reading

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Repos were hot … back in 1979

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Think repos are new? Check out this September 1979 article from the Federal Reserve Bank in St. Louis by Norman N. Bowsher. Even then, repos were popular. From the report: The market for repos has increased dramatically in the past … Continue reading