Lehman minibonds debacle

The rating agencies played a crucial role in these credit crises. They were the ones who gave these minibonds A+ ratings. The rating was equivalent or even better(safer) than, say, DBS Bank's credit rating, or the recent OCBC Preference Shares which was rated A-.

But, who can really blame the rating agencies for giving these high ratings, which was obviously so inaccurate (on hindsight)? The issuer was Lehman Brothers Holdings, ranked no. 37 worldwide on the Forbes' Fortune 500 in 2008, before the shit hit the fan. Its recent years' business performance had certainly looked very reassuring:

Year. Rank. Revenues(USD). Profits(USD)
2006, 62, $32 bil, $3.3 bil
2007, 47, $47 bil, $4.0 bil
2008, 37, $59 bil, $4.2 bil

Now, we know how it (and other such U.S. financial institutions) achieved these seemingly sterling results with 47% (2006) to 26% (2007) increase in revenues. The percentage increase in profits were much lower; the profits likely distributed in obscenely huge bonuses to the senior execs.

The question now arises: just how did they manage to "cover up" the equally obscene huge liabilities from their external auditors, which eventually led to bankruptcy, from a $4.2 billion profit position? Were there widespread "cooking of books" by all these failed corporate giants?

Scandals after financial scandals from the 1980s to the 21st century, is this the American way, that the U.S. politicians are so proud to uphold? Is this the right and moral way in their "pursuit of happyness"? Billions of $ were wiped out from the savings of ordinary U.S. citizens, whilst their corporate "geniuses" made their millions and retired in luxury when the bubble burst.