SEC scours through Lehman Brothers tricks by Zivka Deleva

The officials of the US federal agency Securities and Exchange Commission (or very often known as SEO) have warned the largest banks to work more transparently, so the agency can act better if some other economic crises comes to the surface. The agency that holds responsibility for enforcing the federal securities laws and regulating the securities industry, stocks and options exchanges, wants to work with eyes wider opened after learned that its officials didn’t succeed to account the tricks that the investment bank Lehman Brothers has done before it bankrupted. In a written form, SEC Chairman Mary Schapiro asked 19 banks to return information about whether they ar! e doing the same as the Wall Street investment bank and use accounting tricks that hide the bank’s dangerous financial condition. Lehman’s melt down in September 2008 will be remembered as the largest corporate collapse in the American history. The thing is that with the accounting move known as Repo 105, this bank could mask its weakness. It has hidden $50billion in debt! The regulations must be straightened, and due to this, some charges have been filed against Goldman Sachs and other banks. "It's not clear any action by the SEC could have saved Lehman Brothers, but we are determined to use the lessons of that experience to be more effective," Schapiro said. "More vigorous oversight and a new approach are essential." Few people have been already asked about the case of Lehman. Michael Lee, former vice president of the Bank, got fired after he has tried to warn Lehman’s managers about the concerns he had about the bank’s accounting. After in May t! hat year he sent a letter to the chiefs, he got fired. One th! ing is f or sure: US must not allow themselves to have such surprises when a lot of people are concerned, or better said, when the whole world is concerned. Financial reforms are more than needed in the big country. Obama’s team should warm up the seats and to their best not for the history not to repeat again.

by Zivka Deleva for Cantell TV (http://cantell.tv)

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