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December 23, 2010

E&Y accused of Lehman whitewash, says a Report


New York: The New York's attorney general is accusing accounting giant Ernst & Young of helping Lehman Brothers Holdings disguise its financial condition for more than seven years, while collecting more than $150 million in fees from the firm, according to a media report.

"New York's attorney general Andrew Cuomo is accusing E&Y of helping Lehman Brothers disguise its financial condition for more than seven years, while collecting more than $150 million in fees from the firm," The Wall Street Journal reported.
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The lawsuit filed by Cumo alleges that firms engaged in practices to temporarily erase as much as $50 billion in Lehman assets. This often occurred near
the end of a quarter, allegedly making the company look much healthier than it was, the report noted.

The two companies worked together from 2001 until Lehman's 2008 collapse.

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