FRB Finds Banks Manipulate Debt At Quarter-End

Law360, New York (April 9, 2010, 6:16 PM EDT) -- Major banks, including Bank of America Corp., Citigroup Inc., Goldman Sachs Group Inc., JPMorgan Chase & Co. and Morgan Stanley, temporarily lower their debt ahead of quarterly filings to mask their risk levels, according to the Federal Reserve Bank of New York.

For the past five quarters at least 18 lenders have lowered their debt levels by an average of 42 percent at the end of each filing period before replenishing the leverage in the middle of the quarters, the Wall Street Journal reported Friday, citing...
To view the full article, register now.