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Bank of America admits filing false quarterly reports to hide debts
Key Excerpts from Article on Website of Wall Street Journal
Posted: July 19th, 2010
http://online.wsj.com/article/SB1000142405274870479960457535...
Bank of America Corp. admitted to making six transactions that incorrectly hid from view billions of dollars of debt. The disclosure, made in a letter to the Securities and Exchange Commission, comes as the agency prepares to unveil the results of an inquiry into banks' accounting for borrowing deals known as repurchase agreements, or "repos." BofA's letter was sent in April in response to the inquiry, but this is the first time the details of the six trades in question have been disclosed. The bank had acknowledged in its last quarterly report that its accounting for the transactions, made at the ends of quarters from 2007 to 2009, was incorrect. The bank's disclosure also suggests the trades may be an example of end-of-quarter "window dressing" on Wall Street, in which banks temporarily shed debt just before reporting their finances to the public. The practice ... suggests the banks are carrying more risk most of the time than their investors or customers can easily see, and then juggling it during quarter-end reporting of financials.
Note: For key reports on many deceptive strategies used by banks and other Wall Street corporations, click here.
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