Lehman probe lays blame on 'accounting gimmick'-papers

Katrina Lloyd
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A one-year investigation into the collapse of Lehman Brothers has found evidence top executives including Dick Fuld approved misleading financial statements.

They failed to disclose the use of an accounting device, "Repo 105", which allowed them to hold $50bn off its balance sheet in Q1 and Q2 of 2008, reports the Financial Times. However, the report also laid the blame for the bank's collapse in September 2008 on other participants in the crisis including auditors Ernst & Young, which it says failed to properly challenge inadequate disclosures in the firm's results. The 2,200 page report also found evidence JPMorgan Chase and Citi Group may have contributed to the bank's collapse by demanding collateral in the run-up to its failure. Ac...

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