Fact check
Is it true: Lehman Brothers Repo 105 accounting fraud (2007-08)?
Yes — this is confirmed.
The 2,200-page Valukas bankruptcy examiner report (March 2010) documented Repo 105 usage of $38-50+ billion per quarter in 2007-08, used to temporarily remove assets from Lehman's balance sheet at reporting dates. US counsel had refused to provide the legal opinion; Linklaters London provided it instead. Ernst & Young settled a related NYAG lawsuit for $99 million in April 2015. No criminal charges were brought against senior executives including CEO Dick Fuld.
The claim
Lehman Brothers used Repo 105 transactions to temporarily move $50 billion or more in assets off its balance sheet at each quarter-end, artificially deflating its reported leverage ratios and conceali
Key evidence
US counsel refused to provide the Repo 105 legal opinion
Valukas Report: 2,200-page bankruptcy examiner finding
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