The top headline of the front page of the New York Times remains unaltered in my story headline, except for what the word “risk” really means. In my mind the sense of an “alter ego” sounds like a horror story, not a financial or economic one…
LOUISE STORY and ERIC DASH report in the New York Times:
In the years before its collapse, Lehman used a small company — its “alter ego,” in the words of a former Lehman trader — to shift investments off its books.
The firm, called Hudson Castle, played a crucial, behind-the-scenes role at Lehman, according to an internal Lehman document and interviews with former employees. The relationship raises new questions about the extent to which Lehman obscured its financial condition before it plunged into bankruptcy.
While Hudson Castle appeared to be an independent business, it was deeply entwined with Lehman. For years, its board was controlled by Lehman, which owned a quarter of the firm.
Here’s an excellent explanation from 