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flail Topic in The Credit Debacle Catalog

flailing years (1); Lehman flailing (1).

Sat 2010-08-07 19:56 EDT

Why founding a three-person startup with zero revenue is better than working for Goldman Sachs. | AdGrok

I joined Goldman Sachs in 2005, after five flailing years in a physics Ph.D. program at Berkeley...I was a pricing quant on the Goldman Sachs corporate credit trading desk...Giving sophisticated models and fast computers to traders is like giving handguns and tequila to teenage boys. Only complete mayhem can result (and as we saw recently, complete mayhem did result)....The quants were there to make sure the guns were loaded, but also to make sure the traders didn't shoot themselves in the foot...

AdGrok; better; Found; Goldman Sachs; person startup; working; zero revenue.

naked capitalism Fri 2010-03-19 19:57 EDT

NY Fed Under Geithner Implicated in Lehman Accounting Fraud Allegation

Quite a few observers, including this blogger, have been stunned and frustrated at the refusal to investigate what was almost certain accounting fraud at Lehman. Despite the bankruptcy administrator's effort to blame the gaping hole in Lehman's balance sheet on its disorderly collapse, the idea that the firm, which was by its own accounts solvent, would suddenly spring a roughly $130+ billion hole in its $660 balance sheet, is simply implausible on its face. Indeed, it was such common knowledge in the Lehman flailing about period that Lehman's accounts were sus that Hank Paulson's recent book mentions repeatedly that Lehman's valuations were phony as if it were no big deal. Well, it is folks, as a newly-released examiner's report by Anton Valukas in connection with the Lehman bankruptcy makes clear. The unraveling isn't merely implicating Fuld and his recent succession of CFOs, or its accounting firm, Ernst & Young, as might be expected. It also emerges that the NY Fed, and thus Timothy Geithner, were at a minimum massively derelict in the performance of their duties, and may well be culpable in aiding and abetting Lehman in accounting fraud and Sarbox violations...

Geithner Implicated; Lehman Accounting Fraud Allegation; naked capitalism; NY Fed.

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