# On Repo 105: Lehman's accountant - EY - signing off does not imply anything was kosher. Accounting firms rarely ever blow the whistle against their large clie

# On Repo 105: Lehman's accountant - EY - signing off does not imply anything was kosher. Accounting firms rarely ever blow the whistle against their large clients, especially one that earned it $150 million in fees between 2001 and 2008.AFAIK, the case against EY for fraud still isn't dead. [Source: http://www.forbes.com/sites/francinemckenna/2012/12/13/lehman-troubles-not-over-for-ernst-young/ http://www.forbes.com/sites/francinemckenna/2012/12/13/lehma...] And btw, Dick Fuld denied having any knowledge of Repo 105 transactions at Lehman, a tool that was used to hide nearly $50 billion on its books. [Source: http://www.zerohedge.com/article/repo-105-scam-how-lehman-fooled-everyone-including-allegedly-dick-fuld-and-how-other-banks-a http://www.zerohedge.com/article/repo-105-scam-how-lehman-fo...] # And while you are correct that wilfully understating the value of executive stock options by $250 million may not be fraud, it is a lie told to shareholders and regulators. And we can't blame it on "global" or "structural" issues. # Hiding bonuses is fraudulent when it is done in the context of an acquisition (Bank of America authorized those bonuses to be paid to Merrill Lynch execs, when the financial world was collapsing all around). # Khuzami wasn't the first or only person who walked through SEC's revolving door, nor will he be the last. Here's a great, comprehensive and data-driven analysis of SEC's Revolving Door by the Project on Government Oversight: http://www.pogo.org/our-work/reports/sec-revolving-door.html http://www.pogo.org/our-work/reports/sec-revolving-door.html Again, I'm not alleging each of these (or the numerous others just a simple web search will throw up) is fraud, but refuting the parent's suggestion that the financial crisis was "a consequence of the structure of a system"; that there was no individual culpability/actions; and that "by our standards of justice there is nothing to prosecute".