Andrew Cuomo Is About To Announce Fraud Charges Against Lehman's Accountant, Ernst & Young

This is civil, not criminal, but this has shades of Arthur Anderson, Enron’s doomed auditor..

Ernst & Young, Lehman’s auditor, is about to get hit with civil fraud charges, according to WSJ. Charges could come as soon as this week.

Of course, the charges will concern the controversial “Repo 105” transactions, which allowed Lehman to disguise its leverage levels from investors in the quarters before its demise. These Repo 105s were obviously sign-off on by the auditor, E&Y. The firm may settle early, according to the report.

For more on how a Repo 105 works, watch this video. And read more at WSJ >

Repo 105 from Marketplace on Vimeo.

NOW WATCH: Money & Markets videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.