Saturday, July 10, 2010

Bank of America Admits to Hiding Debt

from Rebel Traders
by Chuck

New details have emerged from a letter that Bank of America sent to the Securities and Exchange Commission (SEC) where the bank admits to hiding debt.

The letter was in response to an SEC inquiry to all major financial institutions following the discovery that Lehman played games with hiding debt in what Lehman classified as ‘Repo 105’ transactions. What Lehman was found to have been doing before their demise was essentially moving debt off of the books prior to earnings statements by reclassifying certain assets. And it was this activity that the SEC was looking into at other financial firms.

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