The Times reports that Ernst & Young (E&Y) could face legal action after a $38M 2,200 page US report into the collapse of Lehman Brothers accused E&Y of professional negligence over a number of years before the collapse of Lehman Bothers in 2008.
The report states that Lehman's used Repo 105 (an accounting "fudge") to remove temporarily up to $50BN from the balance sheet.
The report criticises Ernst & Young, who were Lehman's auditors:
"..for among other things its failure to question and challenge improper or inadequate disclosure in those financial statements".
Could it be that Lehman's will do for E&Y what Enron did for Andersen's?