So it is that Lehman Brothers engaged in a $50 billion Toxic Asset Bop during the financial crisis of 2008.
Despite the fact that most of these loans would never be repaid in full - and many were already in collections - Lehman used those "Assets" as collateral for $50,000,000,000 in loans to "shore up their balance sheet with some cash."
The rest, as they say, is history.
On September 15, 2008 Lehman Brothers filed for Chapter 11 Bankruptcy protection, ending the firm's 158-year reign.
Among the lessons we can all learn from this story is that numbers on a financial statement are not inherently true. The story behind them must stack up.
Warm Regards, Peter