A report into the collapse of Lehman Brothers criticises senior executives and auditor Ernst & Young for serious lapses that led to the firm’s collapse. The report says Lehman was insolvent for weeks before it went bankrupt, sparking a global financial meltdown.
It accuses management of “actionable balance sheet manipulation” and using accounting tricks to hide debts. Ernst & Young said that its last audit of Lehman was “fairly presented” according to accounting rules.
The collapse of the 158-year-old investment bank in September 2008 was the world’s largest bankruptcy. Wall Street, the City of London, and the US and UK governments tried to organise a rescue, fearing – rightly – that Lehman’s failure would set off a chain reaction around the globe… Read more »


