Nine hundred years after Lehman collapsed, the SEC is finally getting closer to going after a bunch of executives, including Dick Fuld, ex-CFO Erin Callan, Ian Lowitt (ex-CFO), and others, Kara Scannell and Carrick Mollenkamp of the WSJ report.Not surprisingly, investigators are focusing on the infamous “Repo 105” accounting gimmick that many banks, not just Lehman, used to make themselves look less leveraged than they actually were.
The SEC’s investigation still has a while to go. The US Attorney is also investigating the firm.
Lehman execs will soon have spent $55 million of insurers’ money defending themselves (and they’ll likely need a lot more before this thing is through).
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