Lehman Brothers Holdings is the subject of three US federal criminal probes and at least 12 subpoenas of individuals to testify before grand juries, according to a lawyer for the bank that last month filed the largest bankruptcy in history.
Lead Lehman bankruptcy lawyer Harvey Miller said on Thursday in federal court in Manhattan that the investigations had been launched by New York US attorneys in Brooklyn and Manhattan as well as in Newark, New Jersey.
They are focusing in part on Lehman's role in the $330 billion (R3.33 trillion) auction-rate securities market and possible crimes associated with its $6 billion June stock issue, according to a person familiar with the case, who requested anonymity.
"It's clear they have given it some urgency and priority," said former justice department attorney Robert Plotkin.
"Given the notoriety and the headlines, this would be one of the ones that would be on a faster track," said the lawyer, who now handles white-collar defence cases.
The demise of Lehman, which sought court protection on September 15, accelerated a global credit crisis that has wiped out $30 trillion of equity value in the past year. The US has begun investigations of mortgage lending, securitisation and failed banks, including Lehman. The FBI was looking into 26 firms, including American International Group, said a law enforcement official.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment