Subscribe to Dollars & Sense magazine. Recent articles related to the financial crisis. Subpeaonas for Lehman ExecsThree US Attorneys' offices (two in New York and one in New Jersey) have launched separate grand jury investigations of failed financial services giant Lehman Brothers. Subpoenas have already been issued to a dozen past executives.The exact nature of the investigations has not been made public, but a lawyer representing Lehman Brothers in bankruptcy court disputed the claim by an administrator for Lehman's European unit that $8 billion was transferred from the companies European operations on the eve of the bankruptcy. The Times of London reports that investigators are also focusing on whether top executives made misleading public statements about the financial health of the company when they solicited billions in additional capital from investors, despite internal communications acknowledging the dire situation of the firm's finances. So far, the executives have maintained that they had no knowledge of how bad things were until the final moments before the bankruptcy. Investigators are also looking into the possibility that the company put undue pressure on ratings agencies artificially inflated the safety of the company's bonds. The New York Times reports that one of the executives that received a subpoena is Richard Fuld Jr. , Lehman's former CEO. Fuld was recently raked over the coals by Rep. Henry Waxman (D-CA) during Congressional hearings. Labels: Corporate Fraud, financial crisis, Henry Waxman, Lehman Brothers, Richard Fuld Jr Please consider donating to Dollars & Sense and/or subscribing to the magazine (both print and e-subscriptions now available!). |
