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Lehman Brothers’ chiefs concealed losses with accounting ‘gimmick’ days before $700billion collapse

Posted By admin On March 12, 2010 @ 5:45 am In Featured Stories | Comments Disabled

UK Daily Mail [1]
March 12, 2010

Lehman Brothers used accounting gimmicks and had been insolvent for weeks before it filed for bankruptcy in September 2008 with more than $700 billion (£461 billion) in assets, an official investigation has found.

Some of Lehman’s management’s decisions can be questioned and the firm’s valuation procedures for its assets may have been wanting – but those responsible were not liable for the firm’s collapse, Anton Valukas found.

However, Lehman could have claims against former chief executive Dick Fuld and chief financial officers Chris O’Meara, Erin Callan and Ian Lowitt for negligence or breach of fiduciary duty, he added.

The revelations came in a 2,200-page report into who could be blamed for the firm’s collapse in 2008, which deepened the global financial crisis.

The examiner said there was also sufficient evidence to support a possible claim that the firm’s auditor, Ernst & Young, had been ‘negligent’ and that Lehman could pursue claims against the firm for ‘professional malpractice’.

Read more: http://www.dailymail.co.uk/news/article-1257350/Lehman-Brothers-bosses-manipulated-balance-sheet-accounting-tricks-scathing-report-finds.html#ixzz0hxlNWEAM [2]

Lehman Brothers chiefs concealed losses with accounting gimmick days before $700billion collapse 190110banner4 [3]

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URLs in this post:

[1] UK Daily Mail: http://www.dailymail.co.uk/news/article-1257350/Lehman-Brothers-bosses-manipulated-balance-sheet-accounting-tricks-scathing-report-finds.html

[2] http://www.dailymail.co.uk/news/article-1257350/Lehman-Brothers-bosses-manipulated-balance-sheet-accounting-tricks-scathing-report-finds.html#ixzz0hxlNWEAM: http://www.dailymail.co.uk/news/article-1257350/Lehman-Brothers-bosses-manipulated-balance-sheet-accounting-tricks-scathing-report-finds.html#ixzz0hxlNWEAM

[3] Image: http://www.prisonplanet.tv

[4] Europe, UK central banks shore up markets reeling from Lehman Brothers’ crash: http://www.prisonplanet.com/europe-uk-central-banks-shore-up-markets-reeling-from-lehman-brothers%e2%80%99-crash.html

[5] NY Fed Under Geithner Implicated in Lehman Accounting Fraud Allegation: http://www.prisonplanet.com/ny-fed-under-geithner-implicated-in-lehman-accounting-fraud-allegation.html

[6] Fury at U.S. Lehman Brothers’ staff who could net £1.4bn in bonuses as UK employees face bleak future: http://www.prisonplanet.com/fury-at-us-lehman-brothers-staff-who-could-net-14bn-in-bonuses-as-uk-employees-face-bleak-future.html

[7] Lehman Brothers files for bankruptcy threatening most acute financial catastrophe in decades: http://www.prisonplanet.com/lehman-brothers-files-for-bankruptcy-threatening-most-acute-financial-catastrophe-in-decades.html

[8] Lehman Whistle-Blower’s Fate: Fired: http://www.prisonplanet.com/lehman-whistle-blowers-fate-fired.html

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