Democratic Underground Latest Greatest Lobby Journals Search Options Help Login
Google

Cuomo Sues Ernst & Young

Printer-friendly format Printer-friendly format
Printer-friendly format Email this thread to a friend
Printer-friendly format Bookmark this thread
This topic is archived.
Home » Discuss » General Discussion Donate to DU
 
The Straight Story Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Dec-21-10 10:14 AM
Original message
Cuomo Sues Ernst & Young
New York Attorney General Andrew Cuomo filed a lawsuit against Ernst & Young for civil fraud Tuesday, accusing one of the nation's largest accounting firms of helping Lehman Brothers Holdings Inc. hide its financial weakness from investors for about seven years before the bank finally collapsed in September of 2008.

Ernst & Young knew about, supported and advised Lehman on its "Repo 105" transactions, a type of debt the bank took on, but labeled as sales, which made the firm appear to investors less risky than it really was, according to the complaint. The audit firm also stood by while Lehman misled analysts and investors on conference calls and in financial filings about its levels of risk, particularly after the firm's stability began to crack after the credit crisis began in 2007, said the complaint.

"Ernst & Young substantially assisted Lehman Brothers Holdings Inc., now bankrupt, to engage in a massive accounting fraud," Mr. Cuomo wrote in his complaint.

Ernst & Young declined to comment.

The accounting firm blessed Lehman's Repo 105 transactions from the time Lehman became one of the firm's most prominent clients in 2001, Mr. Cuomo said in his complaint. The accounting firm collected over $150 million in fees from Lehman between 2001 and 2008, he said in the complaint



http://online.wsj.com/article/SB10001424052748704259704...
Printer Friendly | Permalink |  | Top
Renew Deal Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Dec-21-10 10:18 AM
Response to Original message
1. Why wouldn't he leave that for Shneiderman?
Schneiderman takes over in 11 days.
Printer Friendly | Permalink |  | Top
 
Lint Head Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Dec-21-10 10:49 AM
Response to Original message
2. These rich pricks will pay a fine and move on.
Until we have fines for assholes like these in the billions it is just the price of doing business.
Printer Friendly | Permalink |  | Top
 
Pacifist Patriot Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Dec-21-10 11:19 AM
Response to Reply #2
3. Sadly yes.
Printer Friendly | Permalink |  | Top
 
DU AdBot (1000+ posts) Click to send private message to this author Click to view 
this author's profile Click to add 
this author to your buddy list Click to add 
this author to your Ignore list Thu Apr 17th 2014, 10:29 PM
Response to Original message
Advertisements [?]
 Top

Home » Discuss » General Discussion Donate to DU

Powered by DCForum+ Version 1.1 Copyright 1997-2002 DCScripts.com
Software has been extensively modified by the DU administrators


Important Notices: By participating on this discussion board, visitors agree to abide by the rules outlined on our Rules page. Messages posted on the Democratic Underground Discussion Forums are the opinions of the individuals who post them, and do not necessarily represent the opinions of Democratic Underground, LLC.

Home  |  Discussion Forums  |  Journals |  Store  |  Donate

About DU  |  Contact Us  |  Privacy Policy

Got a message for Democratic Underground? Click here to send us a message.

© 2001 - 2011 Democratic Underground, LLC