Established companies are repurchasing their shares to meet the demands of their employees.
At the heart of the Lehman case are repurchase agreements, commonly called repos, which are a common form of financing on Wall Street.
Jim Chanos, a short-seller who helped expose the Enron scandal, says the rate at which firms are repurchasing their shares is reckless.Eye of newt and toe of frogThe "sorcery" gibe has rich antecedents.
They are repurchasing shares but have no business doing so.
Among the buyers are many cash-laden companies that are repurchasing their own shares.
Among the instruments of these primary dealers that U.S. prime money market funds hold, half are repurchase agreements.
Repos are repurchase agreements, which are transactions in which one party borrows cash using securities as collateral with a promise to buy back those securities at a later date.
The number of shares to be repurchased was not disclosed.
To date, 30 million shares have been repurchased for $956 million.
