Integrity, Intelligence and Energy - in that order - are the three key ingredients in any management team. Safe to say the crowd at Lehman Brothers didn't make it past the Integrity test.
"Lehman never publicly disclosed its use of Repo 105 transactions, its accounting treatment for these transactions, the considerable escalation of its total Repo 105 usage in late 2007 and into 2008, or the material impact these transactions had on the firm’s publicly reported net leverage ratio".
See my article and extracts of the report by the Southern District of Manhattan on the Lehman Bankruptcy.
