Lex

Lex: Lehman report

A one-year probe into the collapse of Lehman Brothers found "credible evidence" that top executives, including the former chief Dick Fuld, approved misleading financial statements and used an "accounting gimmick" to flatter results. The long-awaited report by the court-appointed examiner Anton Valukas also said that there was enough evidence to claim that Ernst & Young, Lehman's auditors, failed to "question and challenge improper or inadequate disclosures" in the firm's results. The 2,200-page report found some evidence that JPMorgan Chase and Citigroup might have contributed to Lehman's slide into bankruptcy in September 2008 by demanding collateral from the struggling bank in the run-up to its failure. Luke Templeman analyses the findings.