Lehman - US report highlights role of Ernst & Young

[He3]

If the government is to be believed, the collapse of US finance giant Lehman Brothers triggered the chain of events that has brought Ireland to its knees.

While Irish authorities show no sign of getting to the bottom of what happened here anytime soon, things have moved more swiftly elsewhere. A US Court-appointed Examiner has reported on the Lehman collapse and pulls no punches in describing the role of some familiar names on the scene. The Examiner, Anton Valukas is not impressed with what he found.

London at centre of Lehman Brothers 'accounting gimmick'

Ernst & Young, Linklaters and Lehman Brothers' London operations played key roles in the investment bank's attempts to mask $50bn (£33bn) of assets on its balance sheet in the run-up to its eventual implosion in September 2008.

The two advisers are under fire for their knowledge of a series of complex transactions known officially within the bank as "Repo 105", but referred to by senior staff as "window dressing" and an "accounting gimmick".

Both deny any wrongdoing.

Mr Valukas argues that there is the potential for viable legal claims against the accounting firm for a number of failings. An E&Y spokesman said its last full audit of the bank was for the year to November 2007, and that it believes Mr Valukas made no findings in his report that Lehman's books were "improperly valued or accounted for incorrectly" in those statements.

The extensive report also reveals that Repo 105 was approved by Linklaters in London, which in 2006 wrote an opinion letter stating that the required transactions were allowed under English law.

A Linklaters spokesman said: "The Examiner…does not criticise those opinions or suggest they were wrong or improper."

London at centre of Lehman Brothers 'accounting gimmick' - Telegraph

James Quinn and Sean Farrell's story in the Telegraph online edition is accompanied by reader comments.

[DCon]

This Ernst & Young?

Ernst & Young statement on Anglo Irish Bank

Dublin 16 January 2009
Ernst & Young confirms that all of the audits conducted for Anglo Irish Bank shareholders were undertaken in accordance with the appropriate auditing standards. Ernst & Young is confident of all audit opinions expressed to Anglo Irish Bank shareholders in the bank’s financial statements and that the accounts show a true and fair view of the state of affairs and results of the bank in accordance with the information and explanations received.

Ernst & Young statement on Anglo Irish Bank - Ernst & Young - Ireland

Last night, sources close to NAMA said the banks and not NAMA will pay all legal fees and due diligence in transfers. Notwithstanding the progress made, delays in transferring the loans are still possible if the EU insists on auditing the loans as they move across. The EU appointed the Financial Regulator who in turn appointed Ernst & Young to conduct the audit of the loans on behalf of the European Commission.

Ernst & Young is the former auditor of the now nationalised Anglo Irish Bank.

Top 10 developers yet to hear from NAMA over loans - Irish, Business - Independent.ie

[PaddyJoe McGillycuddy]

Accountants have escaped very lightly given their role in the banking collapse.

[pjoz]

Cant find the link but I read a US court stated Lehman have grounds to sue Ernst & Young over their performance in discharging duties

[PaddyJoe McGillycuddy]

I wonder how this one is going?

A HIGH-LEVEL independent probe into the activities of Ireland's top accountancy body, the Institute of Chartered Accountants of Ireland (ICAI), has suddenly been widened by the State's watchdog. The probe was launched following a Sunday Independent article.

Last year, the government watchdog, the Irish Auditing and Accounting Supervisory Authority (IAASA), launched a full inquiry following complaints in the Sunday Independent business section into the self-regulating ICAI's disciplinary actions.

State watchdog suddenly widens probe into top accountancy body - Irish, Business - Independent.ie

[An Gilladaker]

Accountants have escaped very lightly given their role in the banking collapse.

They had it all figured out

[He3]

This Ernst & Young?

16 January 2009
Ernst & Young confirms that all of the audits conducted for Anglo Irish Bank shareholders were undertaken in accordance with the appropriate auditing standards. Ernst & Young is confident of all audit opinions expressed to Anglo Irish Bank shareholders in the bank’s financial statements and that the accounts show a true and fair view of the state of affairs and results of the bank in accordance with the information and explanations received.

Ernst & Young statement on Anglo Irish Bank - Ernst & Young - Ireland

...The EU appointed the Financial Regulator who in turn appointed Ernst & Young to conduct the audit of the loans on behalf of the European Commission.

Ernst & Young is the former auditor of the now nationalised Anglo Irish Bank.

Top 10 developers yet to hear from NAMA over loans - Irish, Business - Independent.ie

It seems so.

[cyberianpan]

Ernst & Young, Linklaters and Lehman Brothers' London operations played key roles in the investment bank's attempts to mask $50bn (£33bn) of assets on its balance sheet in the run-up to its eventual implosion in September 2008.

The two advisers are under fire for their knowledge of a series of complex transactions known officially within the bank as "Repo 105", but referred to by senior staff as "window dressing" and an "accounting gimmick".

As a law firm... Linklaters would have unlimited liability ... which would fall personally to their equity partners (and their insurance only covers so much). I note they've 500 partners, not sure if all of these are equity.

This could get interesting

cYp

[Cassandra Syndrome]

Accountants have escaped very lightly given their role in the banking collapse.

What do we do with them all?

[Morte]

Accountants have escaped very lightly given their role in the banking collapse.

Looking at the big picture not really. Their job was to check the information that the banks were giving out. An auditor shouldn't care how crazy a company is going as long as they're not trying to hide the fact that they're going crazy.

Are you seriously trying to say that nobody knew that banks were giving out ludicrous amounts of money on dubious construction projects (either here or in the US)?