And of course, once again, questions are being asked about the high priced accounting firm that was responsible for auditing Lehman’s books. How do accounting firms balance accuracy (and the truth) with maintaining very lucrative contracts? It’s an enormous conflict of interest and it has been that way for years. There’s too much room for problems such as this the way the system operates today.
This new revelation also doesn’t instill confidence in the system of regulation that existed at the time. The Federal Reserve again failed to properly regulate which is why those powers need to be moved outside of that group. But of course, everyone knows it was bad and everyone outside of the GOP and Wall Street want it changed. What is amazing in this report is that such a large business could crumble yet there was little sign of liability for the collapse. There’s something seriously wrong with the system if there that’s the case.
Lehman Brothers used accounting gimmicks and had been insolvent for weeks before it filed for bankruptcy in September 2008, but there was not extensive wrongdoing, a court-appointed examiner has found.
In a 2,200-page report made public on Thursday, examiner Anton Valukas, chairman of law firm Jenner & Block, reported the results of his more than year-long investigation into who could be blamed for the firm’s collapse, which deepened the global financial crisis.
The examiner said that while some of Lehman’s management’s decisions “can be questioned in retrospect” and the firm’s valuation procedures for its assets “may have been wanting,” those responsible for the firm had used their business judgment and were largely not liable for the firm’s collapse.