The U.S. Securities and Exchange Commission has completed its examination into Lehman Brothers Holdings and is unlikely recommend charges, as per the excerpt of a memo received by Reuters.
The excerpt, that was without any date, was sent together with an unnamed letter to Congress claiming that SEC Chairman Mary Schapiro made incorrect statements regarding the agency’s Lehman investigation during a hearing last month. Mary Schapiro on April 25 informed a House Financial Services panel that Lehman was under investigation.
The copy of the memo says that the employees have completed its examination and decided to drop the charges. It didn’t provide a signal of when the staff would submit its final recommendation. An SEC spokesman, John Nester neither confirmed nor denied the legitimacy of the memo, however said that Schapiro was right when she informed Congress that the Lehman case is still under examination. Final decision is yet to be made.
Lehman had been the 4th largest U.S. investment bank at the time when it filed for bankruptcy during September 2008, setting off a panic which threatened the international financial system. Anton Valukas, court-appointed examiner, in a report during March 2010 alleged that Lehman had been bankrupt for weeks prior to it filed for bankruptcy.Previous Post » CME Lowers Margin on Gold and Oil