Pressure Mounts For Heads to Roll for Lehman Debacle
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According to FOX Business News' Charles Gasparino, the Securities and Exchange Commission are increasing efforts to probe former executives of Lehman Brothers Holdings, after a bankruptcy examiner's report showed extreme negligence leading to the firm’s collapse in 2008.
Pressure is being increased on the SEC by the public and Congress according to Gasparino, to bring the a civil case against Lehman in the wake of the court-appointed examiner, Anton Valukas’ report.
There have been no charges filed and it is not known if there will be enough evidence to bring charges for intentionally misleading investors against executives of the firm including former CEO Richard Fuld or Ernest & Young, Lehman's outside auditor.
Gasparino stated that there must be proof of intent found for the SEC to bring charges against Lehman and those affiliated with the firm’s meltdown, citing people close to the probe.
"We can't confirm nor deny the existence of any enforcement investigation, but we’re looking at the report closely as part of our ongoing review of the activities of a number of firms in connection with the financial crisis," an SEC spokesman told FOX Business.
The examiner's report did not say that the firm’s executives or auditors committed any criminal actions during its problems amid the financial crisis, but it strongly suggest that civil charges may in fact be necessary.
The report did say that officials at Lehman were "grossly negligent" in how they manipulated the firm's balance sheet during its collapse, while also accusing Ernest & Young of malpractice for approving Lehman’s use of Repo 105 accounting techniques that are considered controversial.
Pressure is being increased on the SEC by the public and Congress according to Gasparino, to bring the a civil case against Lehman in the wake of the court-appointed examiner, Anton Valukas’ report.
There have been no charges filed and it is not known if there will be enough evidence to bring charges for intentionally misleading investors against executives of the firm including former CEO Richard Fuld or Ernest & Young, Lehman's outside auditor.
Gasparino stated that there must be proof of intent found for the SEC to bring charges against Lehman and those affiliated with the firm’s meltdown, citing people close to the probe.
"We can't confirm nor deny the existence of any enforcement investigation, but we’re looking at the report closely as part of our ongoing review of the activities of a number of firms in connection with the financial crisis," an SEC spokesman told FOX Business.
The examiner's report did not say that the firm’s executives or auditors committed any criminal actions during its problems amid the financial crisis, but it strongly suggest that civil charges may in fact be necessary.
The report did say that officials at Lehman were "grossly negligent" in how they manipulated the firm's balance sheet during its collapse, while also accusing Ernest & Young of malpractice for approving Lehman’s use of Repo 105 accounting techniques that are considered controversial.
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