Lehman CFOs were warned of "reputational risk" of transactions

Lehman's US chief financial officers were warned that the use of transactions to remove tens of billions of dollars off its balance sheet would lead to " reputational risk" for the business if the deals came to light, a report alleges.

In the report of examiner Anton R Valukas, for the US Bankruptcy Court, it is claimed that Lehman's global financial controller Martin Kelly was concerned that transactions used to remove assets off its balance sheet had no substance.

Kelly expressed these concerns to Lehman's chief financial officers Erin Callan and Ian Lowitt, alleged the report.

Further reading:

E &Y "negligent" in Lehman audits, report claims