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FBN's Charlie Gasparino on witnesses expecting to be asked on Lehman Brothers’ use of Repo 105.
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All right as the three year anniversary of Lehman Brothers bankruptcy -- is hard to believe it could at least one law enforcement agency be expanding its case against the failed bank.
Still -- -- Perino has the details expanding still three years later we should point out the three year anniversary is when.
Thursday He had a fifty there's a lot has happened since then.
As we know a recession no charges against no regulatory charges against any.
Lehman executive from Dick Fuld -- -- to the people.
That a lot of people say misled the public about the financial condition of the firm prior to the bankruptcy member lots of positive statements.
The use of repo 105 -- potentially disguise profits at the accounting technique.
That was brought -- all legal but we don't know yet here's what we do know the -- it looks like we were first to report this meaning these -- He -- the US Justice Department.
Are unlikely to bring charges but the New York State attorney general Eric Schneider mean is ramping up his case in in this.
Is investigation of the Lehman Brothers bankruptcy here's what we know.
He's brought a case against Lehman's auditor Ernst and young parents -- -- denies charges but He is -- -- civil case.
We do know now that he's -- going further witnesses.
The potentially asked him to ask them about the role of senior Lehman executives in the firm's demise of this is a pretty interesting thing.
Don't discount the UD New York attorney general's office number Eliot Spitzer made this at one time.
The premier it law enforcement agency.
Against what white collar crime particularly Wall Street for one reason and one reason only.
A New York State -- known as the Martin act where your book your bar for intense and we have to prove intent.
A basic level intent to bring federal charges either civil or criminal.
Well under that New York State law known as the market act that Barr is a lot lower so this is a pretty serious thing.
We do know this they are calling in witnesses in the next couple weeks to talk about.
These accounting irregularities and what and who knew what at Lehman as opposed to Ernst and young this is a pretty serious thing.
I can't tell you they're gonna bring charges who who the hell knows but I can't tell you that the conventional wisdom is at least on the regulatory side.
Dick fold Aaron calendar senior management of Lehman was out of the woods that was the conventional thinking that is not true because this thing is clearly heating up so it's easier.
In the State of New York to prove that one of these executives who or the the accounting firm.
Purposely misled -- -- is executive.
Or consecutive but it had to do it for personal gain that they weren't as the next well they do is it that to ineptitude doesn't mean that you're gonna go to jail it doesn't mean it's wrote the long.
You point out that there are no findings yet and yet the New York attorney general's office.
As far as you -- the New York attorney general has filed once civil case against Ernst and young but we that's the only case.
What I'm saying here's what makes this potentially problematic for the Dick -- and -- cal to the world.
Is that the bar to show intent the -- to show that you purposely.
Did something improper or if -- criminal illegal.
Is much lower than under the federal securities statutes which you point out that Aaron -- -- for the -- and the whole senior management team face tremendous civil.
Litigation from from investors there's there's lots of sort of going back and forth about -- the of their ability to tap insurance funds on that but this is separate this is regulatory.
And the SEC and the Justice Department has a -- or anything yet it looks like they're not.
But Snyder and his office Eric's I'm in the New York attorney general are with that Martin act is clearly ramping up his probe and they're going to be taken depositions or to at least.
I hate I -- his door deposition to sometimes I just interviewed these people it makes no difference they're going to be talking.
-- witnesses people that worked at Lehman to to look at exactly what where the actions of the Lehman executives.
Leading up to that bankruptcy remember very controversial.
Lots of positive statements as a firm was sliding down the use of repo wanna fight that accounting gimmick that some people say disguise losses this is pretty interesting stuff and -- tea.
I think that if any charges gonna come it's gonna come from the New York attorney general because they have that -- act well like I said it's a big stick.
Eliot Spitzer used basically to squeeze just about if -- firm and on Wall Street -- to meet massive settlement.
Back and back in the day you take that ten million dollar bill with him -- gets.
But I was gonna I was gonna give this to Chris for do such a great job as an anchor controlling -- look at the bottom of the president on a 101010.
Million dollars yet and the president.
Is none other than Ronald mercenary I -- that's the case Joker like I don't I -- -- that Eric.
Ten million dollars is million members of the Austin Powers.
Thanks -- one million dollars or by.
