According to the report, Lehman used what amounted to financial engineering to temporarily shuffle $50 billion of troubled assets off its books in the months before its collapse in September 2008 to conceal its dependence on leverage, or borrowed money. Senior Lehman executives, as well as the bankís accountants at Ernst & Young, were aware of the moves, according to Mr. Valukas, the chairman of the law firm Jenner & Block and a former federal prosecutor, who filed the report in connection with Lehmanís bankruptcy case.
Richard S. Fuld Jr., Lehmanís former chief executive, certified the misleading accounts, the report said.
Are these actions illegal? If so, will anyone do jail time for their role in the deception?
|Share |||By Randall Parker at 2010 March 11 11:20 PM Economics Financial Regulation|