Ernst & Young Settles With New York Over Lehman Brothers Repo 105 Deals

April 15, 2015 6:59 PM

59 0

Accounting firm Ernst & Young Ernst & Young will pay $10 million to settle claims made by the State of New York it was complicit in enabling now-defunct investment bank Lehman Brothers to conceal its financial difficulties ahead of the firm’s September 2008 collapse. The settlement involves so-called Repo 105 transactions, which allowed the bank to temporarily remove tens of billions of dollars of securities from its balance sheet without disclosing the maneuvers to investors.

In a suit first brought by then attorney general and current governor Andrew Cuomo, the state alleged that E&Y approved Lehman’s accounting transactions and certified the bank’s financial statements despite knowing that the bank was not disclosing the Repo 105 transactions to investors in publicly d...

Read more

To category page

Loading...