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Fukuyama asked if Putin had "hidden leverage", "perhaps in the form of debts to Russian sources that keep his business empire afloat".
Additionally, the bill would do nothing to prevent speculation in credit derivatives which brought down AIG and continue to embed hidden leverage.
"At present, investors must take an educated guess to determine the hidden leverage from leasing".
But as they have become widespread, concerns have grown that insurers are lowballing their reserves and adding a large amount of hidden leverage to the life insurance industry.
NOW that the Enron wreck has moved to Capitol Hill, perhaps investors will finally learn exactly who knew the gory details about the company's hidden leverage and when they knew them.
Not until the summer of 2007 did Paulson wise up to the "hidden leverage of major U.S. banks" or the sundry elements of the shadow banking system that economists at the Treasury and Fed should have discovered but did not.
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Too much and too restrictive regulation will merely increase the incentive to come up with new, complex financial products to hide leverage.
But it will always be the case that bankers will try to manipulate the system and hide their leverage.
The fact that Enron was able to hide significant leverage and other obligations from the public puts rating agencies at something of a crossroads.
The Lehman Brothers bankruptcy trustee blasted Ernst & Young for allowing Lehman to use a dubious accounting method to hide its leverage in the months leading to its demise, and the attorney general of New York filed fraud charges against Ernst.
We show that, as expected, one isolated big outlier biases the sample cross-correlations towards zero and hence could hide true leverage effect.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com