Here of course, the toothless CARB is investigating things. Across the pond, E&Ys auditing of Lehman attracted more focued interest.
Cuomo sues Ernst & Younghttp://finance.fortune.cnn.com/2010/12/ ... nst-young/
By Colin Barr December 21, 2010: 11:31 AM ET
New York sued the giant accounting firm Ernst & Young Tuesday, saying it helped Lehman Brothers deceive investors about its true health for seven years.
The complaint, filed in state Supreme Court, seeks the repayment of at least $150 million in fees the audit firm collected between 2001, when Lehman's aggressive accounting began, and 2008, when the venerable bank collapsed, precipitating a global bank run.
Seeks $150 million or so
"Our lawsuit seeks to recover the fees collected by Ernst & Young while it was supposed to be using accountable, honest measures to protect the public," said Attorney General Andrew Cuomo.
The suit centers on Ernst & Young's failure to confront Lehman about its practice of reducing the size of its balance sheet through routine securities repurchase agreements that it improperly accounted for as sales. That practice was known as Repo 105.