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  "documentTitle": "Lehman Brothers (LEH)",
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  "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 presenting a forensic accounting critique of Lehman Brothers' financial reporting.",
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      "kind": "paragraph",
      "text": "As you can see, the table in the 10-Q does not match the conference call. There is no reasonable explanation as to how the numbers could move like this between the conference call and the 10-Q.",
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      "text": "Now let’s look at the footnote 1 of the table, explaining Other asset-backed securities: The Company purchases interests in and enters into derivatives with collateralized debt obligation securitization entities (“CDOs”).",
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      "text": "Now, I’d like to put up Lehman’s table of Level 3 assets (Table 3). I want you to look at the column to the far right while I read to you what Ms. Callan said about this during the Q&A on the earnings conference call on March 17.",
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      "text": "Last week, Lehman’s CFO and corporate controller confirmed that the whole $6.5 billion consisted of CDOs or synthetic CDOs. Ms. Callan also confirmed that the 10-Q presentation was the first time that Lehman had disclosed the existence of this CDO exposure.",
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      "kind": "paragraph",
      "text": "I asked them how they could justify only a $200 million write-down on any $6.5 billion pool of CDOs that included $1.6 billion of below investment grade pieces.",
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      "kind": "quote",
      "text": "[A]t the end of the year, we were about 38.8 [billion] in total Level 3 assets. In terms of what happened in Level 3 asset changes this quarter, we had net sort of payments, purchases, or sales of 1.8 billion. We had net transfers in of 1.1 billion.",
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