Lehman Hid Assets In Small Investment Firm: Report

Law360, New York (April 13, 2010, 5:04 PM EDT) -- Lehman Brothers Holdings Inc. reportedly used its control over a smaller investment firm to hide certain assets before filing for bankruptcy, though whether the former financial giant violated federal regulations regarding disclosures remains unclear, experts said.

Lehman used Hudson Castle Group Inc. to shift certain investments off its balance sheets and at times used Hudson vehicles in transactions greater than $1 billion, The New York Times reported Monday. Hudson was prohibited from dealing with Lehman competitors until an agreement with Lehman ended in 2004.

Twenty-five percent...
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