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A daily look at legal news and the business of law: Unsealed Portion of Lehman Report Claims Banks Purchased Lehman Assets Too Cheaply The final portion of the Lehman Bankruptcy Examiner's Report ...
For example, in one case I reviewed, Herman John Kennerty of Wells Fargo gave a deposition describing the department he oversees for Wells Fargo. It's a department dedicated to simply signing ...
New York Attorney General Andrew Cuomo has slapped Big Four audit firm Ernst & Young with civil fraud charges for its alleged role in the collapse of Lehman Brothers. The theory is simple: Lehman ...
Lehman Brothers' financial strategy in 2003 was to invest heavily in mortgage debt, in markets which were being deregulated from consumer protection by the US government. Losses mounted, and Lehman Brothers was forced to file for Chapter 11 bankruptcy after the US government refused to extend a loan. The collapse triggered a global financial ...
On September 22, 2008, a revised proposal to sell the brokerage part of Lehman Brothers holdings of the deal was put before the bankruptcy court, with a $1.3666 billion (£700 million) plan for Barclays to acquire the core business of Lehman Brothers (mainly Lehman's $960 million Midtown Manhattan office skyscraper), was approved.
Near the end Lehman had $700 billion in assets but only $25 billion (about 3.5%) in equity. Furthermore, most of the assets were long-lived or matured in over a year but liabilities were due in less than a year. Lehman had to borrow and repay billions of dollars through the "repo" market every day in order to remain in business.
Accounting giant Ernst & Young is expected to face civil fraud charges by New York prosecutors over its alleged role in the spectacular collapse of Lehman Brothers, according to a Wall Street ...
Repo 105 is Lehman Brothers' name for an accounting maneuver that it used where a short-term repurchase agreement is classified as a sale. The cash obtained through this "sale" is then used to pay down debt, allowing the company to appear to reduce its leverage by temporarily paying down liabilities—just long enough to reflect on the company's published balance sheet.