Seen on the street in Kyiv.

Words of Advice:

"If Something Seems To Be Too Good To Be True, It's Best To Shoot It, Just In Case." -- Fiona Glenanne

“The Mob takes the Fifth. If you’re innocent, why are you taking the Fifth Amendment?” -- The TOFF *

"Foreign Relations Boil Down to Two Things: Talking With People or Killing Them." -- Unknown

“Speed is a poor substitute for accuracy.” -- Real, no-shit, fortune from a fortune cookie

"If you believe that you are talking to G-d, you can justify anything.” — my Dad

"Colt .45s; putting bad guys in the ground since 1873." -- Unknown

"Stay Strapped or Get Clapped." -- probably not Mr. Rogers

"The Dildo of Karma rarely comes lubed." -- Unknown

"Eck!" -- George the Cat

* "TOFF" = Treasonous Orange Fat Fuck, A/K/A Dolt-45,
A/K/A Commandante (or Cadet) Bone Spurs,
A/K/A El Caudillo de Mar-a-Lago, A/K/A the Asset., A/K/A P01135809

Saturday, March 13, 2010

Lehman Brothers, Enron and the Accountants

You might remember that following the collapse of Enron, it was discovered that Enron was loaning money to itself and treating the loans as sales, a little bit of accounting legerdemain that also resulted in the implosion of the accounting firm of Arthur Andersen.

Now it has come to light that Lehman Brothers was doing the exact same trick, only with the help of the accounting firm of Ernst & Young, only this time. Lehman couldn't find an American law firm to approve this bit of bookkeeping fraud. They had to go to England.

So, when will we be smart enough to realize that what we need are good regulations with regulators who are alert and awake, not asleep at the switch like the SEC was? Though, in the only defense possible of the SEC, it was clear to everyone that the SEC was doing exactly what the Bush Administration wanted them to do: They saw nothing, they heard nothing, and they knew nothing.

At what point do we stop only looking for things like this with financial coroners and start trying to catch these thieves in the act?

And at what point does the government stop colluding in funny bookkeeping, as the New York branch of the Federal Reserve was doing? (The head of the NY Fed was some clown named Geithner, too bad the reporters can't seem to find him to ask what he knew.)

2 comments:

montag said...

One possible incentive for the SEC might be for the Chair and Commissioners to be liable for crimes that occur during their terms. If, for example Fuld were found guilty of fraud the commissioners were be guilty as accessories. They would have the opportunity to prove their innocence in front of a jury of their victims.

I know it violates several standards of justice, but wot the hell, if we can torture...

Joe said...

My brilliant plans for reforming the system always run onto the same hidden rock: Anyone who understands the system well enough to find all the frauds could make zillions of dollars by perpetrating them. Working as a regulator, you can look forward to retiring as a thousandaire.

How many people are there, who simultaneously possess ironclad ethics, encyclopedic knowledge, and a mind devious enough to find all the loopholes?