Lehmans executives should have questioned accounting strategy
Window dressing accounting transactions should have been more rigorously looked into by Lehmans' board, according to its investigator Anton Valukas
The collapse of Lehmans might have been averted if its board asked more
questions about accounting treatments that added “window dressing” to the firm’s
quarterly financial statements, according to the investigator looking at the
company.
Anton Valukas, the bankruptcy examiner for Lehmans, told a New York County
Lawyers Association panel that director should have questioned why transactions
known as Repo 105s were used to remove assets and liabilities off the investment
bank’s balance sheet, reported Reuters.
“Questions about window dressing and transactions whose purpose is window
dressing should be asked,” said Valukas.
“There’s no evidence Lehman personnel lied to the board.
“Basic questions were not being asked by the board about things such as
off-balance-sheet transactions.”
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