Lehman probe stalls. Perps may walk…

Lehman probe stalls; execs may escape charges: report

CHICAGO (Reuters) – A government probe into the fall of Lehman Brothers Holdings Inc has hit so many snags that enforcement officials fear they may never be able to bring civil or criminal charges against company executives, the Wall Street Journal reported on Saturday.

According to the paper, Securities and Exchange Commission officials have begun to doubt they can prove that Lehman broke U.S. laws by moving nearly $50 billion in assets off its balance sheet to make it appear that the securities firm had lowered its debt burden.

Quoting people familiar with the situation, the Journal said SEC officials are also worried they might not win any lawsuit against former Lehman Chief Executive Richard Fuld Jr accusing him of improperly accounting for the value of a large real estate portfolio acquired with the takeover of Archstone-Smith Trust, or to hide losses to investors related to that deal.

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1 thought on “Lehman probe stalls. Perps may walk…”

  1. Of course perps will walk; only union members are being persecuted now! They are the cause of all that is wrong with this country! Didn’t anyone know that? The financial institutions that ACTUALLY caused the financial collapse and have profited from it are now ignored, left alone to spend their profits. So much better to blame hard working middle class workers…

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