Repo 105

Fraud Files: Is Ernst & Young to Blame in Lehman Bros. Fraud?

Should Ernst & Young be held responsible for the bad actions of Lehman Brothers? New York Attorney General Andrew Cuomo, who Tuesday slapped the Big Four audit firm with civil fraud charges, thinks so. But it's not an easy question to answer.

Ernst & Young May Face Fraud Charges in the Lehman Debacle

Accounting giant Ernst & Young is expected to face civil fraud charges by New York prosecutors over its alleged role in the spectacular collapse of Lehman Brothers. The lawsuit would mark the first time a Big Four accountant has been charged in regard to the financial crisis.

Legal Briefing: Dell Nears Deal With SEC

Dell has reportedly proposed a settlement to the Securities and Exchange Commission that the SEC staff likes and will recommend the commissioners accept. At issue is how Dell did its accounting on deals with Intel. Dell has already been forced to restate four years of manipulated earnings.

Can Public Companies' Financial Statements Be Trusted?

A study found big banks like Goldman Sachs and Citi temporarily lower their debt by an average of 42% at the end of quarters. After their financial reports are issued, previous debt levels are resumed. Like Lehman Brothers' Repo 105 trick, this is dangerous for investors.

Legal Briefing: The Lehman Repo 105 Lawsuits Begin

An investor has sued the bankrupt company and its former execs for using a financial tactic to present a misleadingly strong picture of the firm's health. The suit is the first in what could be a wave of legal actions.