SEC looking at Lehman accounting for real estate

Reports have emerged that the chief US financial watchdog is investigating the accounting for its property portfolio.

A Wall Street Journal story suggests that investigators from the Securities and Exchange Commission have focused their efforts on whether the failed bank properly marked down the value of the real estate acquired when it took over Archstone-Smith Trust.

The WSJ says that former Lehman finance chief Ian Lowitt has hired top lawyers.

Other accounting policies at Lehman include the now notorious Repo 105 scheme used to raise short term capital.

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