LEHMAN BROTHERS SCANDAL (2008)
Write a 2 pages paper on this scandal .
what ,where, How ,who, why as much detail
Company: Global financial services firm.
What happened: Hid over $50 billion in loans disguised as sales.
Main players: Lehman executives and the company’s auditors, Ernst & Young.
How they did it: Allegedly sold toxic assets to Cayman Island banks with the understanding that they would be bought back eventually. Created the impression Lehman had $50 billion more cash and $50 billion less in toxic assets than it really did.
How they got caught: Went bankrupt.
Penalties: Forced into the largest bankruptcy in U.S. history. SEC didn’t prosecute due to lack of evidence.
Fun fact: In 2007 Lehman Brothers was ranked the #1 “Most Admired Securities Firm” by Fortune Magazine.