Tuesday, March 30, 2010

S.E.C. looks at Wall St. accounting

The Securities and Exchange Commission said on Monday it had started an inquiry into about two dozen financial companies to determine whether they followed accounting practices similar to those recently disclosed in an investigation of Lehman Brothers.

The commission is interested in transactions known as repurchase agreements, which are a common way that investment banks provide funds for trading activities. The commission wants to know whether other Wall Street players used tactics like those that Lehman used to mask their debt levels from investors.

Read on.

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