Public Policy Issues Raised by the Report of the Lehman Bankruptcy Examiner

Statement to the United States House of Representatives, Committee on Financial Services, April 20, 2010

27 Pages Posted: 16 May 2010  

William K. Black

University of Missouri at Kansas City - School of Law

Date Written: April 20, 2010

Abstract

This statement addresses the following issues of public policy in the context of the Lehman failure: The extent to which corporate governance should be enhanced to appropriately manage firm risk.

The role of the SEC as Lehman’s primary regulator in oversight, examination and enforcement in advance of Lehman’s bankruptcy filing, and the role of the other government agencies, including the Federal Reserve Bank of New York (FRBNY), that were monitoring Lehman during the crisis; The relationship and means of communication, especially formal and informal information sharing, between the SEC and FRBNY as Lehman’s financial condition deteriorated as well as between Lehman, the SEC, the Treasury Department, the Board of Governors Federal Reserve, and the FRBNY.

The appropriateness of accounting practices such as Repo 105 or 108 and the adequacy of the disclosure of such accounting practices.

The quality of Lehman’s Management Discussion and Analysis disclosures in its public filings for the 2007 reporting periods.

Keywords: Regulation, banking, fraud, corruption, criminology, white collar crime, mortgage fraud, officer and director liability

JEL Classification: G21, G23, G24, G28, K14, K23, K42

Suggested Citation

Black, William K., Public Policy Issues Raised by the Report of the Lehman Bankruptcy Examiner (April 20, 2010). Statement to the United States House of Representatives, Committee on Financial Services, April 20, 2010. Available at SSRN: https://ssrn.com/abstract=1607043 or http://dx.doi.org/10.2139/ssrn.1607043

William K. Black (Contact Author)

University of Missouri at Kansas City - School of Law ( email )

5100 Rockhill Road
Kansas City, MO 64110-2499
United States

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