Deception. Everyone hates it, especially Attorney General Andrew Cuomo, who is doing his darndest to expose any and all wrongdoers before he is sworn in as governor on January 1. As soon as this week, the Journal reports, Cuomo will file suit against Ernst & Young, the accounting firm charged with auditing Lehman Brothers, for allegedly turning a blind eye to transactions in which the bank used funky accounting to make their risk seem less than it actually was.
The transactions in question, known as “window dressing,” involve repurchase agreements, or repos, a form of short-term borrowing that allows banks to take bigger trading risks. Some banks have systematically lowered their repo debt at the ends of fiscal quarters, making it appear they were less risk-burdened than they actually were most of the time.
Mall Santas of America, we hope you’re all wearing underwear under your suits this year. This guy’s on a rampage.
Auditors Face Fraud Charge [WSJ]
Mall Santas of America, we hope you’re all wearing underwear under your suits this year. This guy’s on a rampage.
