Document Type


Publication Date


Journal / Book Title

Journal of Leadership, Accountability and Ethics


The questionable accounting technique, known as Repo 105, allowed Lehman Brothers to temporarily appear healthier in the eyes of its investors, creditors and other interested parties. These material transactions had the ability to affect the decisions of prudent persons. Nevertheless, Lehman failed to disclose these transactions in the notes to their financial statements and in their filings to the SEC. In this paper, an examination is made of whether Repo 105 transactions were properly recorded and disclosed in Lehman's financial statements and whether Lehman's executives behaved ethically. To answer these questions, an examination is made of Generally Accepted Accounting Standards, the Sarbanes-Oxley Act and the Institute of Management Accountants standards. Our findings suggest that Lehman behaved unethically. Implications of our findings are discussed and suggestions are made for future research.

Journal ISSN / Book ISBN


Published Citation

Jeffers, A. E. (2011). How Lehman Brothers Used Repo 105 to Manipulate Their Financial Statements. Journal of Leadership, Accountability & Ethics, 8(5), 44–55.

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Accounting Commons