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  "documentTitle": "Lehman Brothers (LEH)",
  "authorId": "04_Greenlight_Capital",
  "authorName": "David Einhorn",
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  "presentationDate": "2008-05-21 00:00:00",
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  "notes": "This is a text-heavy slide from a presentation by David Einhorn (Greenlight Capital) regarding Allied Capital.",
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      "kind": "paragraph",
      "text": "One of the key issues I raised about Allied six years ago was its improper use of fair value accounting, as it had been unwilling to take write-downs on investments that failed in the last recession. That issue has returned on a much larger scale in the current credit crisis.",
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      "kind": "paragraph",
      "text": "The issue of the proper use of fair value accounting isn't about strict versus permissive accounting. The issue is that some entities have made investments that they believed would generate smooth returns. Some of these entities, like Allied, promised investors",
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      "kind": "paragraph",
      "text": "The double standard is evident. And Allied Capital is a primary example. Three years before my speech, Allied Capital's CEO, Bill Walton, made the following statement in a magazine interview:",
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      "kind": "paragraph",
      "text": "I want to go outside the usual format for this event and ask this audience by applause... who agrees with me that there should be some significant consequence to the folks at Allied for what they have done?",
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      "kind": "paragraph",
      "text": "If Mr. Walton is correct, why is he still employed...and making tens of millions?",
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      "text": "Open and consistent accounting starts with an attitude of zero tolerance for improprieties. People need to see that people are rewarded for candor in reporting and punished for slipshod practices. The CEO really has to set the moral tone. Without that, nothing happens.",
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