This study investigates earnings management in the context of syndicated loan originations, under which lead arrangers can recognize a disproportionate fraction of front-end fees in the quarter of issuance. I find evidence that lenders initiate additional loans in the last month of fiscal quarters when their reported EPS just meets or beats benchmarks. I also observe that this boost is not costless. These loans are oered at a discount of 15‐20 basis points and are associated with questionable quality as the borrowers experience subsequent credit rating downgrades and CDS initiations. To further understand why lenders underwrite and participate in costly suspect loans, I find evidence that these lead banks concurrently engage in other methods of earnings management and that these loans involve inexperienced and unsophisticated syndicates.