Tuesday, March 16, 2010

WSJ: Lehman fired whistle blower in June 2008

Marketwatch:

Lehman Brothers Holdings Inc. ousted a whistle-blower just weeks after he raised red flags about the securities firm's accounting in 2008, The Wall Street Journal reported on its Web site Tuesday. Matthew Lee, a 14-year Lehman veteran, was let go in late June 2008, after he raised concerns with Lehman's auditor, Ernst & Young, earlier that month that the securities firm was temporarily moving $50 billion in assets off its balance sheet, the report said. This accounting strategy helped to mask the risks Lehman was taking amid scrutiny by investors and regulators about the health of Wall Street firms, the report said. In a statement to the newspaper, Ernst & Young said that Lehman's management investigated Lee's claims and informed Lehman's board that "the allegations were unfounded and there were no material issues identified."

No comments: