|By C.R. Roberts, The News Tribune (Tacoma, Wash.)|
|McClatchy-Tribune Information Services|
In 2009, the state sued.
On Thursday, the
Before declaring bankruptcy,
The lawsuit also claimed that Lehman's financial statements failed to comply with applicable accounting standards. Specifically, the release said, Lehman engaged in a practice known as "Repo 105," whereby they transferred billions of dollars of assets each quarter and accounted for them as sales of assets as opposed to financings. This accounting maneuver gave the illusion Lehman was more financially stable than it was.
WSIB purchased Lehman bonds between 2006 and mid-2008. When Lehman declared bankruptcy, WSIB liquidated its holdings and recorded losses of more than
This settlement recovered roughly one-third of the board's losses from former Lehman executives and directors, underwriters for several Lehman offerings, and
"This settlement is a substantial victory for the state of
According to its website, the WSIB "manages investments for 17 retirement plans for public employees, teachers, school employees, law enforcement officers, firefighters and judges. This also includes the Deferred Compensation Program to supplement other retirement benefits." The board also manages investments for 16 public funds that support or benefit industrial insurance, colleges and universities, and developmental disability programs. The board currently has
(c)2014 The News Tribune (Tacoma, Wash.)
Visit The News Tribune (Tacoma, Wash.) at www.TheNewsTribune.com
Distributed by MCT Information Services