Ernst & Young hits back over Lehman report

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Ernst & Young has defended its audit work for client Lehman Brothers in a letter sent last week by several audit partners to the firm's key clients, and vowed to fight any legal action from regulators or creditors.

The US bank examiners’ report set off a storm of media coverage, during which the auditors were implicated for seemingly condoning the use of controversial Repo 105 transactions (described as an ‘accounting gimmick’).

The bank examiner’s report concluded that “there is sufficient evidence to support a colorable claim that: (1) certain of Lehman’s officers breached their fiduciary duties by exposing Lehman to potential liability for filing materially misleading periodic reports and (2) Ernst & Yo...

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By vyriix
12th Apr 2010 14:22

Alvin

Prepares the popcorn and sit back to watch a classical movie. Wonders how will the public respond to this. 

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