CBS' s 60 Minutes talks to the lawyer who headed the investigation into Lehman Brothers. He says there is clear evidence of fraud and a cover up by Lehman and Ernst and Young, their accounting firm. A whistle-blower is interviewed. Report suggests that one reason (perhaps the main reason given the strong evidence) no charges have been laid is that the FED and SEC had an office inside Lehman where they oversaw daily transactions for at least the last six months before the collapse. They therefore were aware of the accounting tricks, such as repo #105, used to falsely suggest Lehman had an extra $50 Billion in capital.
Add corruption to the list of things I hate about the US policy response to the crisis. Oh yeah, the whistle blower who refused to sign off on the false accounting statements -he got "downsized" prior to Lehman’s collapse and remains unemployed. Dick Fuld, the x- Lehman president is back working as a consultant (presumably he has a lot to offer FIs on how to deal with regulators).
The narrative sounds like it has been taken directly from HBO’s “The Wire”.
Add corruption to the list of things I hate about the US policy response to the crisis. Oh yeah, the whistle blower who refused to sign off on the false accounting statements -he got "downsized" prior to Lehman’s collapse and remains unemployed. Dick Fuld, the x- Lehman president is back working as a consultant (presumably he has a lot to offer FIs on how to deal with regulators).
The narrative sounds like it has been taken directly from HBO’s “The Wire”.
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