The internet is ablaze today with repo 105. Everyone is searching for it and twittering about it. "Repo 105" is one of the top 100 searched terms on Google today.
The world of high finance - with its exotic products - has to fall back upon simple lies to dress up its balance sheet. Lehman's financial pundits did basically this - 'sell' something toxic off their balance sheet every quarter with a guarantee to buy it back soon after. It appeared as a sale, when it was actually just parking. You had to do more and more of it every quarter. Oh yes and the CEO was not aware of it - not $50 billion worth of it.
Ernst and Young were ok with it - they reported for numbers till nov 2007 that the numbers were fairly presented inspite of whistle-blowing by an insider.
I would love to retain E&Y any time I need help with the HMRC. Oh yes and Linklaters as well.
Crooked E and PWC have company now. And given the similarity of events, this line will only grow longer.