An accounting maneuver that allows a company to reclassify a short-term loan as a sale to make its balance sheet look more sound. Company A might take out a loan from company B, using some of its assets as collateral. When the loan is repaid, company A can claim that it sold the assets to company B and then bought them back. This maneuver can allow a company to conceal how dependent it is on debt.
Related information about repo 105:
- Repo 105 - Wikipedia, the free encyclopedia
Repo 105 is an accounting maneuver where a short-term loan is classified as a sale. The cash obtained through this "sale" is then used to pay down debt, ...
- Repo 105: Lehman's 'Accounting Gimmick' Explained : Planet - NPR
Mar 12, 2010 ... As the financial crisis grew in 2007 and 2008, the now-defunct banking giant knew it needed to reduce its reliance on borrowed money.
- The Origins of Lehman's 'Repo 105' - NYTimes.com
Mar 12, 2010 ... DealBook explores the British origins and basis of Lehman Brothers' now- infamous "Repo 105" accounting practice, which helped the firm ...
- The "Repo 105" Scam: How Lehman Fooled Everyone (Including ...
Mar 11, 2010 ... Presenting a detailed look at "Repo 105" - the next soundbite sure to fill the airwaves over the next weeks and months, as more and more ...
- Repo 105 on Vimeo
It's the title of a dubious financing transaction that Lehman Brothers used in 2008 to make its balance sheet look healthier than it really was. Senior Editor ...
- Lehman's Repo 105: More Than You Ever Wanted to Know ...
Mar 15, 2010 ... By now you've heard of Repo 105, the accounting "gimmick" Lehman Brothers used to move some $50 billion in assets off its balance sheet.
- Repo 105 Definition | Investopedia
An accounting trick in which a company classifies a short-term loan as a sale and subsequently uses the cash proceeds from said sale to reduce its liabilities.
- Lehman Bankrutpcy: 'Repo 105,' Firm's 'Accounting Gimmick,' Was ...
Mar 13, 2010 ... UPDATE: Scroll down to see Dylan Ratigan's segment ** The arcane "accounting gimmick" employed by Lehman Brothers as the firm failed in ...