WASHINGTON, April 19 (Reuters) - Mary Schapiro, chairman of the U.S. Securities and Exchange Commission, said in prepared testimony released on Monday. Schapiro will be testifying before the House Financial Services Committee on Tuesday about the failure of Lehman Brothers:
* SEC Chairman Mary Schapiro Says Lehman failure highlights irresponsible
lending, excessive reliance on credit raters
* Schapiro says Lehman failure highlighted siloed financial regulatory
framework with insufficient risk monitoring
* Schapiro says 'the seeds of Lehman's failure were sown well before 2008'
* Schapiro says Lehman's aggressive growth strategy in 2006 contributed to
collapse
* Schapiro says immediate cause of Lehman's failure was markets',
counterparties' loss of confidence in viability of firm
* Schapiro says SEC did not do enough to identify Lehman's risks or to require
additional capital, liquidity
* Schapiro says SEC, other regulators were unaware of Lehman's use of 'repo
105' transactions
* Schapiro says SEC did not perform an audit of Lehman's balance sheet, relied
on management
* Schapiro says Lehman's disclosures would lead one to believe it accounted for
all repos as financings
* Schapiro says SEC broadly probing firms' repo disclosures, will 'take
appropriate action' if finds faulty disclosures
* Schapiro says regulators should have challenged Lehman more about its risk
taking
* Schapiro says SEC considering new rules for broker-dealers, including higher
net capital requirements, explicit leverage-based requirements
* Schapiro says failure of Lehman demonstrates need for financial reform
(Company news desk in Washington; +1 202 898 8400, washington.newsroom@thomsonreuters.com) 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.
* SEC Chairman Mary Schapiro Says Lehman failure highlights irresponsible
lending, excessive reliance on credit raters
* Schapiro says Lehman failure highlighted siloed financial regulatory
framework with insufficient risk monitoring
* Schapiro says 'the seeds of Lehman's failure were sown well before 2008'
* Schapiro says Lehman's aggressive growth strategy in 2006 contributed to
collapse
* Schapiro says immediate cause of Lehman's failure was markets',
counterparties' loss of confidence in viability of firm
* Schapiro says SEC did not do enough to identify Lehman's risks or to require
additional capital, liquidity
* Schapiro says SEC, other regulators were unaware of Lehman's use of 'repo
105' transactions
* Schapiro says SEC did not perform an audit of Lehman's balance sheet, relied
on management
* Schapiro says Lehman's disclosures would lead one to believe it accounted for
all repos as financings
* Schapiro says SEC broadly probing firms' repo disclosures, will 'take
appropriate action' if finds faulty disclosures
* Schapiro says regulators should have challenged Lehman more about its risk
taking
* Schapiro says SEC considering new rules for broker-dealers, including higher
net capital requirements, explicit leverage-based requirements
* Schapiro says failure of Lehman demonstrates need for financial reform
(Company news desk in Washington; +1 202 898 8400, washington.newsroom@thomsonreuters.com) 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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