PracticeAuditLehman CFOs were warned of “reputational risk” of transactions

Lehman CFOs were warned of "reputational risk" of transactions

Financial controller warned Lehman CFOs that transactions to improve its balance sheet had "no substance", report alleges

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

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