Friday, March 12, 2010

No You See It.

And now you don't. Everything you probably thought about Lehman Brothers most senior management turns out to be.....true. They lied, they trimmed, they misled their own Board of Directors. They did so with the full knowledge of their lawyers and their accountants.

The U.S. Bankruptcy Court-appointed examiner's report could hardly be more damning. As the WSJ points out, it would be helpful if we had the same thorough examination of Fannie Mae, Freddie Mac, Citi, Bank of America, AIG, etc. One doubts the findings would be much different.

The examiner's report represents the total vindication of David Einhorn, the short-selling hedge fund manager who said throughout 2007 and 2008 that Lehman Brothers senior management repeatedly and knowingly lied about the true status of its business and balance sheet. Mr. Einhorn's critics owe him a profuse and abject apology.