Ernst & Young faces court over Lehman's repo scheme
New York attorney-general Andrew Cuomo sues accountants for signing off bank's plan to hide leverage
New York State attorney-general Andrew Cuomo has launched a suit against the accountancy firm Ernst & Young (E&Y) in the New York State Supreme Court. The firm, he said, helped Lehman Brothers set up a series of repo transactions to conceal the true extent of the bank's leverage.
"For more than seven years leading up to Lehman's bankruptcy filing in September 2008, Lehman engaged in so-called "Repo 105" transactions, explicitly approved by E&Y. The transactions' purpose was to temporarily park
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