The media coverage surrounding the use of Repo 105s by Lehman Brothers (Lehman Brothers news) as a way to mask billions of dollars worth of troubled assets on its books was intense and in some ways damning. Lehman Brothers' executives took a severe whipping. But the fact is that a lot of banks--and other companies--engage in some form of window dressing. Lehman Brothers may have taken things to an extreme. But should we be concerned about other banks?

"The big question is the extent to which other major banks used, and still use, creative financing techniques, and whether they, like Lehman, broke any rules," notes the New York Times. Which notes a few examples beyond Repos. Total return swaps can be used to similar effect. This is a business opportunity for some. Jefferies Group "has gone so far as to shift the timing of its own financial reports this year so that, for a price, it can open its balance sheet to other banks looking to massage their numbers." The SEC (SEC news) is taking a look at these practices, and at some point we may see some guidelines. 

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