SEC requests Repo 105 information from major banks

Mary Schapiro, chairman of the Securities and Exchange Commission, said the agency sent letters to the 19 largest banks requesting information about Repo 105, an accounting strategy that has been blamed for the collapse of Lehman Bros. In testimony at a congressional hearing, Schapiro said the agency is looking into Lehman's use of Repo 105. Former Lehman CEO Richard Fuld said he has "absolutely no recollection whatsoever" about the firm using Repo 105 transactions. Meanwhile, the Financial Accounting Standards Board sent a letter to lawmakers saying it will work with the SEC to make changes to accounting rules for repos.

http://www.marketwatch.com/story/sec-fasb-vow-to-close-lehman-accounting-loophole-2010-04-20