How Repo Mans vanishing accounting trick got a London link

By Alistair Osborne 1004PM GMT twelve March 2010

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Maybe Dick Fuld and his chums at Lehman Brothers are broom closet fans, since how they finessed their Repo 105 accounting attempt with a assisting palm from auditors Ernst & Young and lawyers Linklaters.

Even in this post-credit break world, it does appear abounding that a bank can fool around now-you-see-me, now-you-don"t with $50bn of resources and get the understanding sealed off. Banks all the time conduct their change sheets by trade resources for short-term liquidity. But they don"t customarily have them disband exactly by valuing the resources at 105pc of the income perceived and pursuit that a sale.

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It"s not in the category of the Enron accounting (that accomplished Arthur Andersen"s auditing career) but E&Y has a little explaining to do as does Linklaters. The London-based law organisation rubber-stamped Repo 105 and, tellingly, was usually asked to since opposition American law firms refused. What does that contend about London?

Luckily both will get a possibility to insist in court, where Anton Valukas"s "best seller" as the decider called it will trigger lotsa lawsuits from Lehman"s creditors.

The decider obviously hasn"t review most best-sellers. But you consternation if Valukas could right away do a identical pursuit on Royal Bank of Scotland and HBOS, whose downfalls need identical debate research as against to grandstanding by the Treasury Select Committee. The reports competence even have a decent film.

A BA reward intrigue would be a flier

Kamikaze missions can appear heroic. But you in all finish up dead. Just a thought for the Unite kinship and the 12,000 British Airways cabin organisation it claims to represent.

By fixing set upon dates, Unite knows it is already causing BA monetary pain. Passengers won"t book. And by subsequent Wednesday, BA trainer Willie Walsh will terminate flights. In 2007, a set upon was averted at the eleventh hour but the intrusion still cost BA �80m.

With �2bn of income in the hold, Walsh will not behind down. Instead he will find some-more cost cuts to equivalent set upon losses. Crew will lose transport privileges and more.

Time is short. But BA could nonetheless suggest a benefaction a capability bonus, paid in shares. That way, organisation good if the City does. The pilots have something similar. And, who knows, it competence even fly.

Dover a pier in a storm

Update Dame Vera Lynn and she"d be singing "There"ll be blue difference over/The white cliffs of Dover." Because, buoy, is the denunciation blue right now.

"Severely damaged", "profound disagreement", "untenable state". That"s usually the printable things from the Port of Dover"s 3 greatest business when describing stream family with management. They"re melancholy authorised movement too.

P&O Ferries, Norfolkline and SeaFrance comment for 80pc of the port"s traffic. So they sort of equate when Dover"s arch senior manager Bob Goldfield is sailing forward with a �300m privatisation.

Selling Britain"s greatest certitude ports is the ultimate Treasury wheeze to seaside up the storm-tossed open finance management and Dover was meant to set the waves rolling on �1bn of sales.

Instead all certitude has damaged down. The operators are livid that they"ve had their tariffs jacked up, in a recession, on the stratagem the income would assistance account a second packet terminal. Now they find that Mr Goldfield plans to make use of half Dover"s �60m income pot to repair the grant deficit, whilst revelation any new owners can jump over depot two. Provocatively, he wants a 35pc rates climb too. The packet lines competence have been naive. But you can see because they"re angry that the pier is abusing the corner energy as usually Dover can hoop their ships. They right away wish a regulator or something identical Ofshore perhaps? to strengthen them. So, if the Government wants this sale to swim, it competence have to intervene. Dame Vera sang of "love and delight and assent ever after". But, you wouldn"t bank on that.

alistair.osborne@telegraph.co.uk