Report: SEC was aware of questionable accounting before LehmanNews added by ProWEB Media on July 21, 2010
Gary Linnell

ProWEB Media

Joined: December 27, 2005

The Securities and Exchange Commission (SEC) knew about Wall Street's accounting practice of qualifying repurchase agreements as sales instead of borrowings well before the collapse of Lehman Brothers brought the issues into the national spotlight, according to a recent report by the Wall Street Journal.

The SEC has questioned 115 transactions by 102 separate companies since 2004 in an effort to determine if they property accounted for repurchase agreements and other short term trades.

During the past few weeks, Citigroup Inc, AIG, and Bank of America Corp have admitted classifying some repos as sales rather than listing them as loans in their books.
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