[Editor’s Note: Lehman used the same accounting trick as Hypo Alpe Adria. Also, it was a change in a fair value accounting practices and a market to market rule that allowed Lehman to declare itself bankrupt. The rules were changed in such a way that banks could only book assets that they could sell immediately as a positive on their balance sheets.]
Ernst & Young charged with Lehman fraud
(AFP) – 17 hours ago
NEW YORK — New York’s attorney general on Tuesday charged accounting firm Ernst & Young with fraud for allegedly helping Lehman Brothers conceal billions of dollars in debt prior to the bank’s collapse.
In a lawsuit, New York attorney general and incoming governor Andrew Cuomo charged Ernst & Young with helping Lehman Brothers remove tens of billions of dollars in securities from its balance sheet “in order to deceive the public about Lehman?s true liquidity condition.” Read the rest of this entry »