Friday, March 19, 2010

A Smoking Gun Emerges in Lehmangate

In a development that is reminiscent of the whistleblower and star witness that emerged in the Enron collapse, AP is reporting that a a former Lehman Sr. VP had alerted upper management that Lehman was underreporting its amount of outstanding debt each month by billions.  He was promptly fired and reached a termination agreement which stopped paying after Lehman collapsed.  He is now a creditor in the liquidation proceedings.

"A Lehman Brothers whistleblower warned his bosses that accounting gimmicks the bank used before its collapse may have been illegal, his lawyer said Friday."  Here's the Yahoo News link:  LINK

Lee wrote in his letter that "I believe the manner in which the firm is reporting these assets is potentially misleading to the public and various governmental agencies," Lee wrote. "If so, I believe the firm may be in violation of the code."

Clearly there is a huge scandal/cover-up here that goes all the way up at least to then NY Fed Chairthief, Tim Geithner, and probably all the way up to Bernanke.  Chris Dodd has called on Attorney General Eric Holder to investigate.  As per my post below "Lehmangate Part 2," I explain that Holder is no stranger to enabling fraud and corruption as a public official, so I'm not holding my breath that he will do anything.  Please email your relevant House Rep and both Senators if you are angered by this and want to see justice.

BUT, there is a smoking gun, it's still smoking and there can now be NO QUESTION in the minds of skeptics that this is a huge scandal unfolding.

No comments:

Post a Comment