April 19 (Reuters) - Lehman Brothers Holdings Inc:
* Examiner valukas says in prepared testimony before house committee that he
'found Lehman was significantly and persistently in excess of its own risk
limits'
* Examiner valukas: 'rather than adjust business decisions to adapt to risk
limit excesses, management decided to adjust the risk limits to adapt to
business goals'
* Examiner valukas: 'we found that the SEC was aware of these excesses and
simply acquiesced'
* Examiner valukas: 'Lehman was unique among the investment banks in measuring
'risk appetite'
* Examiner valukas: archstone transaction would not have been made had Lehman
adhered to its own risk limits
* Examiner valukas: Lehman did not make a systematic effort to reduce overall
commercial real estate risks until spring of 2008
* Examiner valukas: Lehman did not include many of its riskiest assets in its
stress testing, such as commercial real estate
* Examiner valukas: agencies gathered information and monitored Lehman, 'but no
agency regulated'
* Examiner valukas: 'fed and treasury took pains to tell US that the SEC was
lehman's regulator, and that they therefore deferred to the SEC'
* Examiner valukas: former SEC chairman cox said agency's statutory
jurisdiction was limited to lehman's broker-dealer unit and that it was not
the regulator of Lehman itself
* Examiner valukas: 'we believe it is clear that the SEC was lehman's primary
regulator'
* Examiner valukas: SEC in general simply collected data; 'it did not direct
action, it did not regulate'
* Examiner valukas: SEC knew Lehman was reporting sums in its reported
liquidity pool that the SEC did not believe were in fact liquid
* Examiner valukas: SEC knew that Lehman was exceeding its risk control limits
* Examiner valukas: SEC should have known that Lehman was manipulating its
balance sheet to make its leverage appear better than it was
* Examiner valukas: there were 'serious lapses' in SEC, federal reserve bank of
New York working together to avert lehman's failure
* Examiner valukas: 'the government simply acquiesced to the information it was
given; it took no regulatory action, it did not ask hard questions'
((New York Equities Desk; tel: +1 646 223 6000))
(For more news about Lehman Brothers Holdings Inc click here:) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
* Examiner valukas says in prepared testimony before house committee that he
'found Lehman was significantly and persistently in excess of its own risk
limits'
* Examiner valukas: 'rather than adjust business decisions to adapt to risk
limit excesses, management decided to adjust the risk limits to adapt to
business goals'
* Examiner valukas: 'we found that the SEC was aware of these excesses and
simply acquiesced'
* Examiner valukas: 'Lehman was unique among the investment banks in measuring
'risk appetite'
* Examiner valukas: archstone transaction would not have been made had Lehman
adhered to its own risk limits
* Examiner valukas: Lehman did not make a systematic effort to reduce overall
commercial real estate risks until spring of 2008
* Examiner valukas: Lehman did not include many of its riskiest assets in its
stress testing, such as commercial real estate
* Examiner valukas: agencies gathered information and monitored Lehman, 'but no
agency regulated'
* Examiner valukas: 'fed and treasury took pains to tell US that the SEC was
lehman's regulator, and that they therefore deferred to the SEC'
* Examiner valukas: former SEC chairman cox said agency's statutory
jurisdiction was limited to lehman's broker-dealer unit and that it was not
the regulator of Lehman itself
* Examiner valukas: 'we believe it is clear that the SEC was lehman's primary
regulator'
* Examiner valukas: SEC in general simply collected data; 'it did not direct
action, it did not regulate'
* Examiner valukas: SEC knew Lehman was reporting sums in its reported
liquidity pool that the SEC did not believe were in fact liquid
* Examiner valukas: SEC knew that Lehman was exceeding its risk control limits
* Examiner valukas: SEC should have known that Lehman was manipulating its
balance sheet to make its leverage appear better than it was
* Examiner valukas: there were 'serious lapses' in SEC, federal reserve bank of
New York working together to avert lehman's failure
* Examiner valukas: 'the government simply acquiesced to the information it was
given; it took no regulatory action, it did not ask hard questions'
((New York Equities Desk; tel: +1 646 223 6000))
(For more news about Lehman Brothers Holdings Inc click here:) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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