Recent stories about Wall Street
contain a recurring theme: deceit.
For example, this week the
CEO of the late Lehman Brothers, Richard S. Fuld Jr., with a completely
straight face swore
to Congress that
he’d been utterly out to lunch on the issue of “Repo 105,” a sleight-of-hand
accounting procedure auditors found Lehman used to conceal its debts.
Last week, the Securities and
Exchange Commission filed a civil lawsuit charging
Goldman Sachs with securities fraud
and describing a scheme in which Goldman defrauded clients by selling
them a mortgage investment to bet on after secretly permitting selection
of its component securities by a hedge fund manager who Goldman knew
planned to bet against it.