Ritchie double-takes Repo 105
Posted by Christie Malry on March 30, 2010 at 9:28 pm
Richard Murphy notes that the SEC has written to several financial services companies to enquire whether they were using transactions like Repo 105.
This is actually very bad news for Ritchie. His article on Repo 105, as you'll recall, argued that Lehmans was trying to undertake GAAP arbitrage between UK GAAP and US GAAP. So the fact that the SEC seems to believe it didn't fly under US GAAP on top of the FSA's comment that it didn't work under UK GAAP either is a comprehensive torpedoing of Ritchie's theory.
Better luck next time, Ritchie!
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