Thursday, May 27, 2010
BAC and C: We made "errors" when we cooked our books
In recent filings with regulators, the two big banks disclosed that over the past three years, they at times erroneously classified some short-term repurchase agreements, or "repos," as sales when they should have been classified as borrowings. Though the classifications involved billions of dollars, they represented relatively small amounts for the banks.
A bankruptcy-court examiner said Lehman had been doing the same thing to make its balance sheet look better before it filed for bankruptcy in September 2008, using a strategy dubbed "Repo 105" that helped the Wall Street firm move $50 billion in assets off its balance sheet.
Just an innocent mistake--and BAC number is $70, $60 or $50 billion the last three quarters.
But to banks, with Turbo Timmy as their best friend, that's just a rounding error!!
Posted by Palmoni at 8:27 AM