If it is classified as a "sale" rather than financing, shouldn't the bank have to pay sales tax (which would amount to billions)?
The rules are different for purely financial transactions. It doesn't make sense for someone to pay an 8% sales tax on buying a 90-day T-bill with a .14% yield.
I don't get it. If it was "blessed" by an English law firm that indicated that the transaction was only valid under English law, then how does it still apply under American law? It sounds like they broke the rules, they just made it look like they weren't to anyone who wasn't paying close enough attention.
The "blessing", to my knowledge, concerned compliance with accounting rules and therefore depends on the accounting standards Lehman used, which are internationally accepted ones.
That should be fraud, the entire purpose was to mislead.
I wonder who else has done this, or continues to do this. Seems like a major loophole for banks to exploit.
Thanks for stating the obvious. Now, do you have anything remotely insightful to add?
If Lehman did it, is it not reasonable to assume that others did it as well?
What lies beneath TARP/TALF/TANF etc. I wonder ... ?