Repos (repurchase agreements) and the failure of Lehman… The Wall Street Journal starts to explain how Lehman used Repos to “lend” its troubled assets off of their balance sheets and raise cash on Balance Sheet reporting days (and agreeing to buy them back the next day) to misrepresent their financial condition.
On any given night, the Federal Reserve is holding $1.5 trillion in lent “stuff” overnight from its primary dealers. Can we handle the truth?
